Refinancing: Which Loan Program is for You?
Although it seems like it sometimes, there are not as many refinance choices as there are borrowers! Call us at 714-970-9700 and we will match you with the refinance loan program that fits you best. surveying your choices, you'll need to think about your goals for your refinance.
Making Your Payments Lower
Are achieving lower monthly payments and a lower rate your main reasons for refinancing? Then a low, fixed rate loan may be the ideal loan program for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage loan, even if interest rates rise. A fixed-rate mortgage can be especially a good idea if you don't plan to sell your home within the next 5 years or so. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Are you refinancing mainly to "cash out" some home equity? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. So you want to find a loan for more than the balance remaining of your present mortgage.Then you'll want You might not increase your mortgage payemnt, however, if you've had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out a portion of your home 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 home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars in your budget each month.
Building up Equity More Quickly
Do you hope to build up equity quicker, and have your mortgage paid off sooner? If this is your hope, your refinance loan can switch you to a mortgage loan program with a short, for example: a 15 year loan. The monthly payments will probably be more than they were with a longer term mortgage, but the pay-off is: you will pay quite a bit less interest and can build up equity quicker. Conversely, if your existing longer term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the switch without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at 714-970-9700. We would love to help you reach your goals!
Curious about refinancing? Call us: 714-970-9700.