Refinancing: Which Option is for You?
There aren't as many refinance loan programs as there are borrowers, but sometimes it seems like it! Call us at (760)789-9995 and we will match you with the loan program that best fits you. surveying your choices, you'll need to determine what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are getting reduced monthly payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the best choice for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate varies. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even when interest rates rise. This can be especially a good choice 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 within several years, an adjustable rate mortgage with a small initial rate might be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Your house needs renovating; your son has gone to college and needs tuition money; or you are planning a special vacation. So you want to qualify for a loan higher than the remaining balance of your current mortgage.In that case, you'll You'll be looking for a loan for more than the balance remaining with your present mortgage in that case. You may not increase your mortgage payemnt, however, if you've had your current loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Do you want to pull out some equity to consolidate additional debt? Good plan! If you have a fair amount of equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.
Paying it off Sooner
Are you planning to fatten up your equity faster, and pay off your mortgage sooner? Consider refinancing with a shorterterm loan, like a 15-year mortgage. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will usually be higher than they were. But, you might be able to switch without a higher monthly mortgage payment if your long term mortgage loan was closed a while back, and the remaining balance is small. You may even make it lower! To help you determine your options and the many benefits of refinancing, please contact us at (760)789-9995. We are here for you.