Which Refinancing Program is Right for You?
There aren't as many loan programs as there are borrowers, but it feels like it sometimes! We can help you select the refinance loan program that will fit your situation the best. Call us at (562) 693-5048 to get things started. There are several questions to ask yourself as you consider the options.
Making Your Payments Lower
Are achieving better monthly payments and a lower rate your main reasons for refinancing? 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 might want to refinance. Even if interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be particularly a good choice if you aren't expecting a move within the next five years or so. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your equity with your refinance? Your house needs new carpet; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. In this case, you need to find a loan above the remaining balance on your existing mortgage loan.So you will You will be looking for a loan for a higher amount than the balance remaining with your present mortgage in that case. If you've had your current mortgage for quite a while and/or have a mortgage with a high interest rate, you might\could be able to do this without making your mortgage payment bigger.
Do you hold other debt, perhaps with higher interest, that you need to consolidate? If you have enough home equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) might help save you a chunk of money each month.
Getting a Shorter Term Loan
Are you wanting to fatten your equity faster, and get your mortgage paid off more quickly? Consider refinancing to a short-term loan, such as a 15-year mortgage. Even though your monthly payments will usually be more, you can be paying less interest; so your equity will build up faster. Conversely, if your current long-term loan has a low remaining balance, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at (562) 693-5048. We are here for you.
Want to know more about refinancing? Give us a call at (562) 693-5048.