Refinancing: Which Loan Program is for You?
The number of refinance options available to borrowers is truly breathtaking. Contact us at 714-970-9700 and we'll work with you to qualify you for the perfect loan program to fit your financial situation. There are some general things to bear in mind while you consider your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan could be a good option for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a fixed-rate loan may be an especially good option for you. However, an ARM with a low intitial payment could be a wiser way to lower your payments if you plan on moving in the next few years.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Your home needs new carpet; your son has gone to University and needs tuition money; or you are taking your family on a cruise. So you want to get a loan higher than the remaining balance on your current mortgage loan.So you will want to need to get a loan for a bigger amount than the remaining balance on your current mortgage loan. If you've had your existing mortgage for a long time and/or have a mortgage loan with a high interest rate, you might\could be able to do this without making your mortgage payment higher.
Maybe you'd like to pull out a portion of the equity (cash out) to put toward other debt. If you own any debt with high interest (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.
Building up Equity More Quickly
Do you hope to build up home equity more quickly, and have your mortgage paid off faster? You should consider refinancing with a shorterterm loan, like a 15-year mortgage. You will be paying less interest and growing your home equity faster, although your payments will generally be bigger than you were paying. However, if you've had your existing 30-year mortgage loan for a number of years and the remaining balance is somewhat low, you might be do this without increasing your mortgage payment — you might even be able to save! To help you figure out your options and the multiple benefits in refinancing, please contact us at 714-970-9700. We will help you reach your goals!
Curious about refinancing your home? Give us a call: 714-970-9700.