Refinancing: Which Option is for You?
There are a huge number of refinancing programs available to borrowers. Call us at 714-970-9700 and we'll help you qualify for the best refinance loan to fit your needs. What are your goals for your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? If so, a good choice could be a low fixed-rate loan. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage, even when interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise option. However, if you can see yourself selling your home within several years, an ARM with a small initial rate might be the ideal way to bring down your monthly payments.
Are you refinancing primarily to "cash out" some home equity? Your home needs renovating; your daughter has gone to University and needs tuition money; or you are planning a special vacation. In this case, you'll want to apply for a loan for more than the balance remaining on your current mortgage.In this case, you will You'll be looking for a loan for more than the remaining balance on your existing mortgage in that case. However, if your loan interest rate is currently high and you have held it for a long time, you could be able to accomplish your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you want to pull out a portion of your equity to consolidate additional debt? Great idea! If you own some higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Paying it off Faster
Do you hope to build up home equity quicker, and pay off your mortgage more quickly? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. Your mortgage payments will likely be higher than they were with a long-term mortgage loan, but the pay-off is: that you will pay substantially less interest and will build up equity more quickly. But, you might be able to make the change without a bigger monthly payment if your longer term loan was closed a while back, and the remaining balance is low. You may even make it lower! To help you figure out your options and the multiple benefits of refinancing, please contact us at 714-970-9700. We are here for you.
Want to know more about refinancing your home? Give us a call at 714-970-9700.