Selecting a Refinancing Program
Although it seems like it at times, there aren't as many refinance loan choices as there are borrowers! Call us at 714-970-9700 and we will match you with the refinance loan program that best fits you. There are some general things to bear in mind while you review your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then the best choice might be a low fixed-rate loan. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage, even if interest rates rise. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a wise choice. On the other hand, if you do see yourself selling your home within the next few years, an ARM with a low initial rate could be the best way to bring down your monthly payments.
Refinancing to Cash Out
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? Your home needs new carpet; your son has gone to University and needs tuition money; or you have a special family vacation planned. In this case, you'll need to find a loan for more than the balance remaining on your present mortgage loan.Then you'll want to find a loan for a bigger amount than the balance remaining on your existing mortgage. You may not increase your monthly payemnt, though, if you have had your current loan for a while, and/or your loan interest rate is high.
Do you want to pull out some equity to consolidate other debt? Yes you can! If you have the equity in your home to make it work, paying off 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 in your budget each month.
Switching to a Shorter Term Loan
Are you planning to fatten your equity faster, and pay off your mortgage loan more quickly? If this is your wish, your refinance can move you to a loan program with a shorter term, such as a 15 year loan. Your mortgage payments will probably be higher than they were with your long-term loan, but the pay-off is: you will pay substantially less interest and can build up equity more quickly. But, you could be able to make the change without a higher monthly payment if your long term loan was closed a while back, and the balance remaining is small. You may even make it lower! To help you determine your options and the numerous benefits in refinancing, please contact us at 714-970-9700. We are here to help you reach your goals!
Curious about refinancing? Call us at 714-970-9700.