Selecting a Refinancing Option
The huge number of refinance options available to borrowers is truly breathtaking. Contact us at 714-970-9700 and we will match you with the refinance program that best fits you. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your loan, even if interest rates rise. If you are planning to stay in your home for at least five more years, a fixed rate loan may be a particulary good option for you. However, if you can see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate could be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for refinancing? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you'll want to get a loan higher than the remaining balance on your current mortgage loan.Then you'll want You may not increase your monthly payemnt, however, if you've had your existing mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you want to cash out some equity to consolidate additional debt? Great idea! If you have built up some home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of cash each month.
Paying it off Sooner
Are you dreaming of paying off your loan sooner, while building up your home equity quicker? Then, you'll need to look into refinancing to a short term mortgage - like a fifteen-year mortgage loan. You will be paying less interest and growing your equity faster, although your payments will usually be higher than they were. But, you may be able to switch without a bigger monthly mortgage payment if your long term mortgage loan was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you determine your options and the multiple benefits in refinancing, please call us at 714-970-9700. We will help you reach your goals!
Curious about refinancing? Call us at 714-970-9700.