Which Refinancing Option is Best for You?
There are a huge number of refinancing programs available to borrowers. Contact us at (760)789-9995 and we can match you with the refinance program that best fits you. There are several things to keep in mind as you review your choices.
Making Your Payments Lower
Are achieving better monthly payments and an improved rate your main refinance goals? If so, your best option could be a low fixed-rate loan. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a good choice. However, an ARM with a low intitial payment may be a better way to lower your monthly payments if you expect to move within the near future.
Getting Out some Cash
Are you planning to cash out some of your home equity in your refinance? Perhaps you need to pay for home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you will need to get a loan higher than the remaining balance on your present mortgage.In that case, you You will be looking for a loan for more than the current balance on your current mortgage in this case. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you have other debt, maybe with a higher interest rate, that you want to consolidate? If you have built up some equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash each month.
Paying it off Sooner
Are you hoping to fatten your home equity faster, and pay off your mortgage loan sooner? If this is your wish, your refinance mortgage can change you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and increasing your home equity faster, although your mortgage payments will likely be more than you have been paying. But, you could be able to switch without a bigger monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is small. You could even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at (760)789-9995. We are here to help you reach your goals!