Which Refinancing Loan Program is Best for You?
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Although it seems like it sometimes, there are not as many refinance loan options as there are borrowers! We can help you select the refinance program that can fit your financial situation the best. Contact us at (949) 249-3067 to get started. What do you hope to achieve with refinancing? Considering in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are getting reduced mortgage payments and a lower rate your main refinance goals? Then the best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even if interest rates rise. This kind of loan is especially a wise choice if you don't think you'll be selling your home within the next five years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Getting Out some Cash
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Your house needs improvements; your daughter has gone to University and needs tuition money; or you are taking your family on a cruise. In this case, you will need to qualify for a loan above the balance remaining of your present mortgage.With this goal, you will You will want to qualify for a loan for more than the remaining balance with your current mortgage in that case. 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 an increase in your mortgage payment.
Consolidating Your Debt
Perhaps you hope to cash out a portion of the equity (cash out) to use toward other debt. If you have the home equity to make it work, taking care of other high interest debt (like credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars a month.
Paying it off Faster
Are you hoping to fatten your home equity faster, and pay your mortgage loan off sooner? If this is your goal, the refinance loan can switch you to a mortgage program with a short, for example: a 15 year loan. You will be paying less interest and increasing your equity more quickly, even though your payments will likely be higher than they were. However, if you've had your existing 30-year loan for a long time and the remaining balance is relatively low, you may be able to do this without increasing your monthly payment — you could even be able to save! To help you determine your options and the many benefits of refinancing, please contact us at (949) 249-3067. We can help you reach your goals!
Want to know more about refinancing? Give us a call: (949) 249-3067.