Which Refinancing Option is Best for You?
Although it may seem like it at times, there aren't as many refinance options as there are applicants! We can help you choose the loan program that will fit your financial situation the best. Call us at 714-970-9700 to begin the process. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan may be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage, even as interest rates rise. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can especially be a wise option. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get lower mortgage payments.
Getting Out some Cash
Are you hoping to cash out some of your equity in your refinance? Your home needs new carpet; your daughter has been accepted to college and needs tuition; or you are planning a special vacation. With this in mind, you will want to get a loan higher than the remaining balance of your present mortgage loan.With this goal, you'll want However, if your mortgage rate is currently high and you've had it for a long time, you could be able to reach your goals without an increase in your mortgage payment.
Do you have other debt, perhaps with a higher interest rate, that you need to consolidate? If you hold any higher interest debts (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough equity.
Paying it off Sooner
Are you dreaming of paying your loan off more quickly, while building up your equity quicker? If this is your hope, the refinance mortgage can switch you to a mortgage loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and increasing your equity faster, although your payments will usually be more than you were paying. However, if you have had your current 30-year mortgage for a number of years and the remaining balance is somewhat low, you might be do this without raising your mortgage payment — you might even be able to save! To help you understand your options and the many benefits of refinancing, please call us at 714-970-9700. We will help you reach your goals!
Curious about refinancing your home? Call us at 714-970-9700.