Selecting a Refinancing Program
Although it seems like it at times, there aren't as many refinance choices as there are applicants! Contact us at 714-508-7905 and we will help you qualify for the right refinance program for your needs. What are your goals for your refinance loan? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, a good option may be a low fixed-rate loan. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set the low rate for the life of your mortgage. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a great option. On the other hand, if you do see yourself moving within several years, an ARM mortgage with a low initial rate may be the best way to bring down your monthly payments.
Refinancing to Cash Out
Are you wanting to cash out some of your equity in your refinance? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. Then you'll need to find a loan above the remaining balance on your existing mortgage loan.With this goal, you'll You will need to apply for a loan for more than the current balance of your present mortgage in this case. If you've had your existing mortgage for quite a while and/or have a mortgage loan with a high interest rate, you might\could be able to do this without increasing your monthly payment.
Do you hold other debt, maybe with high interest, that you want to consolidate? If you have the equity in your home to make it work, taking care of other high interest debt (for example: home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Building up Equity Faster
Are you wanting to fatten your equity faster, and pay your mortgage off sooner? If this is your goal, your refinance mortgage can switch you to a mortgage loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will likely be more than they were. But, you could be able to switch without a higher monthly payment if your longer term mortgage loan was closed a while back, and the balance remaining is low enough. You could even make it lower! To help you understand your options and the numerous benefits of refinancing, please call us at 714-508-7905. We will help you reach your goals!