Choosing a Refinancing Option
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! Call us at 714-970-9700 and we can match you with the loan program that is ideal for your needs. There are some general questions to ask yourself as you consider your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a wise choice for you. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low interest rate for the life of your mortgage. This is particularly a wise idea if you don't think you will move within the next five years or so. However, if you do see yourself selling your home before too long, an ARM with a low initial rate may be the best way to reduce your monthly payments.
Are you hoping to cash out some of your equity in your refinance? Maybe you need to update your kitchen, take care of your college kid's tuition, or go on a dream vacation. In this case, you'll want to get a loan higher than the balance remaining of your existing mortgage.In this case, you need If you've had your existing mortgage loan for a number of years and/or have a loan whose interest rate is high, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Perhaps you hope to cash out some equity in your home (cash out) to use toward other debt. If you have enough home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash every month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while beefing up your equity faster? In that case, you want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Even though your monthly payment amount will likely be increased, you will be paying less interest; so your home equity will rise up faster. But, you may be able to switch without a bigger monthly payment if your long term mortgage was closed a while back, and the balance remaining is somewhat low. 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.
Curious about refinancing your home? Give us a call at 714-970-9700.