Refinancing: Which Option is for You?
There are a huge number of refinancing programs available to borrowers. We can help you choose the loan program that will fit your financial situation the best. Call us at 562 320-0510 to get things started. There are some general questions to ask yourself as you consider your options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan may be a wise option for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low interest rate for the term of your loan. This kind of loan can be especially a good idea if you aren't expecting a move within the next 5 years or so. On the other hand, if you do see yourself selling your home before too long, an adjustable rate mortgage with a low initial rate could be the ideal way to bring down your monthly payments.
Is "cashing out" your primary purpose for refinancing? Perhaps you want to update your kitchen, pay your child's college tuition bill, or go on a dream vacation. Then you will need to find a loan for more than the balance remaining on your current mortgage loan.So you'll want However, if your mortgage rate is high now and you have held it for a long time, you could be able to reach your goals without a rise in your mortgage payment.
Perhaps you'd like to cash out some equity (cash out) to put toward other debt. If you hold some debt with steep interest (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have enough home equity.
Building up Equity More Quickly
Do you plan to build up home equity more quickly, and pay off your mortgage sooner? You should consider refinancing with a shorterterm loan, like a 15-year mortgage loan. Even though your monthly payments will usually be more, you can be paying less interest; so your home equity will rise up faster. However, if you've had your existing thirty year loan for a number of years and the remaining balance is relatively low, you may be able to do this without raising your monthly payment — you could even be able to save! To help you figure out your options and the many benefits in refinancing, please call us at 562 320-0510. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us at 562 320-0510.