Which Refinancing Program is Best for You?
There are an enormous number of refinancing programs available to borrowers. Contact us at (562) 693-5048 and we'll help you qualify for the best refinance program for your needs. There are several questions to ask yourself while you look at the options.
Lowering Your Payments
Are getting reduced mortgage payments and an improved rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan might be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even when rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you set that low rate for the term of your loan. This can be especially a wise option if you aren't expecting a move within the next five years or so. However, an ARM with a low intitial payment may be a better way to lower your monthly payments if you plan on moving in the next few years.
Getting Out some Cash
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? It could be you want to make home improvements, take care of your college kid's tuition, or take your family on a dream vacation. So you will want to find a loan for more than the remaining balance on your current mortgage loan.Then you'll want to find a loan program for a higher number than the balance remaining on your existing mortgage. You may not increase your mortgage payemnt, though, if you have had your current mortgage for a while, and/or your loan interest rate is high.
Do you want to pull out a portion of your home equity to consolidate additional debt? Yes you can! If you have a fair amount of home equity, paying toward other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could help save you a lot of cash each month.
Paying it off Sooner
Are you dreaming of paying off your loan faster, while building up your equity faster? In that case, you want to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. Although your monthly payment amount will usually be increased, you can save on interest; so your equity will rise up faster. However, if you have held your existing 30 year mortgage for a long time and the remaining balance is somewhat low, you might be do this without raising your monthly payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please call us at (562) 693-5048. We would love to help you reach your goals!
Curious about refinancing your home? Give us a call at (562) 693-5048.