Choosing a Refinancing Program
There are a huge number of refinancing programs available to borrowers. Call us at (562) 693-5048 and we can help you qualify for the right refinance program to fit your financial situation. surveying your choices, you'll need to consider your goals for your refinance.
Reducing Your Monthly Payments
Are getting reduced monthly payments and a lower rate your main reasons for refinancing? If so, getting a low, fixed-rate loan could be a good choice for you. Perhaps you currently hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the term of your mortgage. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great choice. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Are you wanting to cash out some of your home equity with your refinance? Maybe you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. Then you will need to apply for a loan for more than the remaining balance on your current mortgage.Then you'll You'll need to find a loan for more than the current balance with your present mortgage loan in that case. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Maybe you hope to cash out some home equity (cash out) to put toward other debt. If you have the home equity to make it work, paying off other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars in your budget each month.
Paying it off Faster
Do you want to build up equity quicker, and have your mortgage paid off more quickly? Consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. The mortgage payments will likely be higher than they were with the long-term loan, but in exchange, you will pay considerably less interest and can build up equity more quickly. But, you could be able to switch without much increase in your monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is low enough. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please contact us at (562) 693-5048. We will help you reach your goals!
Want to know more about refinancing your home? Call us at (562) 693-5048.