Refinancing: Which Option is for You?
The number of refinance options available can be overwhelming. We can guide you to locate the refinance loan program that will fit your needs the best. Call us at (760)789-9995 to get started. In order to review your choices, you need to think about what you want to achieve with the refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right choice for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in the low rate for the term of your mortgage. This kind of loan can be particularly a wise option if you aren't expecting a move within the next five years or so. On the other hand, if you can see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate may be the ideal way to lower your monthly payment.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? Maybe you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are planning some home improvements. So you'll want to apply for a loan for more than the balance remaining on your existing mortgage loan.Then you You will be looking for a loan for more than the remaining balance with your current mortgage in that case. If you've had your existing mortgage loan for quite a while and/or have a mortgage loan with high interest, you might\could be able to do this without increasing your mortgage payment.
Do you want to cash out some equity to consolidate other debt? Good idea! If you have the equity in your home to make it work, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars per month.
Getting a Shorter Term Loan
Do you hope to build up equity more quickly, and pay off your mortgage more quickly? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage. The mortgage payments will probably be more than they were with a longer term loan, but in exchange, that you will pay quite a bit less interest and can build up equity more quickly. However, if you've held your current 30-year loan for a number of years and the loan balance is somewhat low, you might be do this without increasing your mortgage payment — you could even be able to save! To help you figure out your options and the numerous benefits of refinancing, please call us at (760)789-9995. We would love to help you reach your goals!