Refinancing: Which Program is for You?
There are not as many refinance loan options as there are borrowers, but it feels like it at times! We can help you select the loan program that can fit your situation the best. Contact us at (760)789-9995 to begin the process. What are your goals for refinancing? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan might be a wise choice for you. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you close a fixed rate mortgage, you lock in that low rate for the life of your loan. This kind of loan can be particularly a wise idea if you don't think you'll be selling your home within the next 5 years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments.
Getting Out some Cash
Is your refinance goal primarily to "cash out" some home equity? Maybe you want to update your kitchen, pay your child's college tuition bill, or go on a dream vacation. So you want to find a loan for more than the remaining balance of your existing mortgage.So you'll need If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you want to cash out a portion of your home equity to consolidate additional debt? Good plan! If you have any higher interest debts (like credit cards or car loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the home equity built up to make it work.
Paying it off Sooner
Are you wanting to fatten your equity faster, and get your mortgage paid off sooner? In that case, you want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. The payments will likely be higher than with your long-term mortgage loan, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. But, you may be able to make the change without a bigger monthly mortgage payment if your longer term mortgage was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you figure out your options and the many benefits in refinancing, please call us at (760)789-9995. We are here for you.