Refinancing: Which Program is for You?
The number of refinance options available is truly breathtaking. Call us at 714-970-9700 and we will match you with the refinance program that fits you best. There are several things to keep in mind while you look at your options.
Making Your Payments Lower
Are achieving lower mortgage payments and a better rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the ideal loan program for you. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you expect to live in your home for about five more years, a loan with a fixed rate may be a particulary good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Are you hoping to cash out some of your equity in your refinance? It could be you're planning a special vacation; you need to pay college tuition for your child; or you are planning some home improvements. With this in mind, you want to get a loan above the remaining balance of your present mortgage.So you'll You will be looking for a loan for more than the balance remaining on your present home loan in that case. You might not have an increase in your mortgage payemnt, however, if you have had your current loan for a number of years, and/or your loan interest rate is high.
Perhaps you hope to cash out a portion of the equity in your home (cash out) to use toward other debt. If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars per month.
Switching to a Shorter Term Loan
Are you planning to fatten up your home equity faster, and get your mortgage paid off sooner? In that case, you'll need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. The payments will probably be higher than they were with a longer term loan, but in exchange, that you will pay considerably less interest and will build up equity quicker. But, you might be able to switch without a bigger monthly mortgage payment if your long term loan was closed a while ago, and the remaining balance is low enough. You could even pay less! To help you figure out your options and the numerous benefits of refinancing, please contact us at 714-970-9700. We are here for you.
Want to know more about refinancing your home? Call us: 714-970-9700.