Which Refinancing Program is Best for You?
There are a huge number of refinancing options available to borrowers. Contact us at 714-970-9700 and we'll work with you to qualify you for the right refinance loan for your situation. surveying your choices, you can consider your goals for your refinance.
Reducing Your Monthly Payments
Are getting lower payments and a lower rate your main reasons for refinancing? If so, getting a low, fixed-rate loan may be a good option for you. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are planning to live in your home for about five more years, a fixed rate mortgage may be an especially good option for you. On the other hand, if you do see yourself moving in the near future, an ARM mortgage with a low initial rate might be the ideal way to lower your monthly payments.
Are you refinancing primarily to pull out some home equity for an infusion of cash? Your home needs updating; your son has been accepted to University and needs tuition; or you have a special family vacation planned. Then you need to get a loan for more than the balance remaining of your present mortgage.Then you want However, if your loan interest rate is high now and you've held it for quite a few years, you may be able to accomplish your goals without a rise in your mortgage payment.
Do you want to pull out some of your equity to consolidate additional debt? Good idea! If you have the home equity for it, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars monthly.
Switching to a Shorter Term Loan
Do you hope to build up equity more quickly, and have your mortgage paid off sooner? If this is your plan, your refinance can change you to a mortgage loan program with a shorter term, such as a 15 year loan. Your monthly payments will likely be more than they were with your longer term mortgage, but in exchange, you will pay considerably less interest and can build up equity quicker. But, you could be able to switch without a bigger monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is somewhat low. You could even make it lower! To help you determine your options and the many benefits in refinancing, please call us at 714-970-9700. We are here for you.
Want to know more about refinancing your home? Call us: 714-970-9700.