Which Refinancing Loan Program is Right for You?
There are a huge number of refinancing options available to borrowers. Contact us at (760)789-9995 and we can help you qualify for the best loan program for your needs. In the interest of looking at your options, you can think about your goals for the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. This can be especially a wise option if you don't think you'll be moving within the next 5 years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower payments.
Are you refinancing primarily to pull out some home equity for an infusion of cash? Your house needs renovating; your daughter has gone to University and needs tuition money; or you are taking your family on a cruise. So you'll need to look for a loan for more than the balance remaining on your current mortgage loan.Then you'll want If you've had your existing mortgage loan for quite a while and/or have a mortgage loan with a high interest rate, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate other debt? Great idea! If you hold any debt with high interest (like credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the home equity built up to make it work.
Getting a Shorter Term Loan
Are you hoping to fatten up your equity faster, and pay off your mortgage loan sooner? You should consider refinancing to a short-term loan, like a 15-year mortgage. Your monthly payments will likely be more than they were with your longer term mortgage, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. On the other hand, if your current long-term mortgage loan has a low balance remaining, and was closed a while ago, you could be able to make the switch without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at (760)789-9995. We are here to help you reach your goals!