Selecting a Refinancing Loan

Even though it seems like it at times, there aren't as many refinance options as there are applicants! Contact us at (562) 693-5048 and we can match you with the refinance loan program that fits you best. There are some general questions to ask yourself while you look at your choices.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan might be a wise option for you. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your loan, even if interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a wise loan option. However, an ARM with a low intitial payment could be a better way to reduce your monthly payments if you plan on moving in the next few years.

Getting Out some Cash

Are you planning to cash out some of your equity in your refinance? Your home needs renovating; your daughter has been accepted to University and needs tuition; or you have a special family vacation planned. In this case, you'll want to find a loan higher than the remaining balance on your existing mortgage.So you'll want You may not have an increase in your mortgage payemnt, though, if you've had your existing mortgage loan for a number of years, and/or your interest rate is high.

Consolidating Debt

Perhaps you'd like to cash out some home equity (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars each month.

Building up Equity Faster

Are you hoping to fatten your equity faster, and get your mortgage paid off sooner? If this is your wish, the refinance mortgage can switch you to a mortgage program with a shorter term, like a 15 year loan. Your monthly payments will probably be more than with your long-term mortgage, but the pay-off is: you will pay considerably less interest and can build up equity quicker. Conversely, if your existing long-term mortgage loan has a small remaining balance, and was closed a number of years ago, you may be able to make the switch without paying more each month. To help you understand your options and the numerous benefits of refinancing, please contact us at (562) 693-5048. We would love to help you reach your goals!

Want to know more about refinancing? Give us a call: (562) 693-5048.

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