Refinancing: Which Program is for You?
Although it may seem like it sometimes, there are not as many loan programs as there are borrowers! Contact us at 714-970-9700 and we will match you with the refinance loan program that best fits you. There are some general questions to ask yourself while you look at your choices.
Making Your Payments Lower
Are getting better payments and an improved rate your main refinance goals? If so, applying for a low, fixed-rate loan may be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you plan to live in your home for at least five more years, a fixed rate loan may be an especially good fit for you. However, if you can see yourself moving within several years, an ARM mortgage with a low initial rate could be the ideal way to reduce your monthly payment.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Perhaps you need to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you need to get a loan higher than the balance remaining on your current mortgage.Then you will want However, if your interest rate is high now and you've had it for a long time, you may be able to accomplish your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you want to cash out some of your home equity to consolidate other debt? Yes you can! If you have the home equity for it, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while beefing up your equity faster? Consider refinancing with a shorterterm loan, such as a 15-year mortgage. The monthly payments will likely be more than with your longer term mortgage, but the pay-off is: you will pay quite a bit less interest and can build up equity quicker. But, you could be able to switch without a bigger monthly payment if your longer term mortgage was closed a while back, and the remaining balance is somewhat low. You could even make it lower! To help you understand your options and the multiple benefits in refinancing, please contact us at 714-970-9700. We are here for you.
Curious about refinancing? Call us: 714-970-9700.