Which Refinancing Option is Right for You?
When you are overwhelmed with all the choices, it may seem as if there are even more loan programs than applicants! We can help you select the refinance loan program that will fit your situation the best. Call us at 714-970-9700 to get things started. There are some general questions to ask yourself as you review the options.
Lowering Your Payments
Are getting better monthly payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set that low interest rate for the term of your loan. If you plan to live in your home for at least five more years, a loan with a fixed rate may be an especially good option for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? It could be you need to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. With this in mind, you'll need to find a loan above the remaining balance on your current mortgage.In that case, you will need However, if your loan interest rate is high now and you've held it for quite a few years, you could be able to achieve your goals without making your monthly payments higher.
Do you want to pull out some of your equity to consolidate additional debt? Good idea! 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 car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars monthly.
Switching to a Shorter Term Loan
Are you planning to fatten your equity faster, and pay off your mortgage sooner? If this is your hope, the refinance mortgage can move you to a mortgage program with a shorter term, like a 15 year loan. The payments will likely be higher than with your longer term loan, but in exchange, you will pay substantially less interest and can build up equity quicker. On the other hand, if your current long-term loan has a small balance remaining, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you understand your options and the numerous benefits of refinancing, please call us at 714-970-9700. We are here for you.
Want to know more about refinancing? Call us at 714-970-9700.