Which Refinancing Loan Program is Right for You?
The number of refinance options available to borrowers can be overwhelming. Contact us at 949-200-3800 and we will match you with the loan program that best fits you. There are some general questions to ask yourself as you consider your options.
Reducing Your Monthly Payments
Are achieving better payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. Maybe you are now in a mortgage with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even as interest rates rise. A fixed-rate mortgage is particularly a good option if you aren't planning a move within the next 5 years or so. On the other hand, if you do see yourself selling your home before too long, an ARM mortgage with a small initial rate could be the ideal way to bring down your monthly payment.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Maybe you want to pay for home improvements, pay your child's college tuition bill, or take a cruise. So you'll want to find a loan above the remaining balance of your existing mortgage.With this goal, you You'll be looking for a loan for a bigger amount than the remaining balance with your present mortgage in this case. If you've had your current mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Maybe you hope to cash out a portion of the equity (cash out) to use toward other debt. If you have a fair amount of home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a chunk of cash each month.
Building up Equity More Quickly
Do you hope to build up equity quicker, and have your mortgage paid off more quickly? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. You will be paying less interest and increasing your equity faster, even though your mortgage payments will usually be higher than you have been paying. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low enough. You may even make it lower! To help you understand your options and the numerous benefits of refinancing, please call us at 949-200-3800. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call at 949-200-3800