Selecting a Refinancing Program
The number of refinance options available to borrowers is truly breathtaking. Contact us at (760)789-9995 and we can match you with the loan program that fits you best. In the interest of looking at your options, you can consider your goals for the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best option might be a low fixed-rate loan. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — with which the interest rate varies. Even as interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you plan to stay in your home for at least five more years, a loan with a fixed rate may be an especially good option for you. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Your home needs new carpet; your daughter has been accepted to college and needs tuition; or you have a special family vacation planned. Then you'll want to qualify for a loan for more than the remaining balance on your present mortgage loan.So you'll You will need to find a loan for more than the balance remaining with your existing mortgage in this case. You might not have an increase in your mortgage payemnt, however, if you've had your current mortgage loan for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you want to pull out some home equity to consolidate additional debt? Great plan! If you have a fair amount of equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.
Paying it off Sooner
Are you planning to fatten up your home equity faster, and get your mortgage paid off more quickly? Consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Although your mortgage payments will usually be more, you can save on interest; so your equity amount will build up faster. On the other hand, if your existing long-term loan has a low balance remaining, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you determine your options and the numerous benefits of refinancing, please contact us at (760)789-9995. We are here for you.