Selecting a Refinancing Loan
There are an enormous number of refinancing options available to borrowers. We can help you find the refinance loan program that will fit your needs the best. Call us at 949-235-3507 to begin the process. There are several things to have in mind as you consider your options.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan may be a wise choice for you. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate varies. Even if interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a good choice if you aren't planning a move within the next five years or so. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Maybe you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. So you will need to get a loan for more than the remaining balance on your current mortgage loan.Then you'll want to need to qualify for a loan program for a bigger number than the remaining balance on your present mortgage. You might not increase your mortgage payemnt, though, if you've had your existing loan for a long time, and/or your loan interest rate is high.
Maybe you hope to cash out some home equity (cash out) to put toward other debt. If you have the home equity to make it work, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars monthly.
Paying it off Faster
Are you hoping to fatten your home equity faster, and get your mortgage paid off more quickly? In that case, you'll need to look into refinancing to a short term mortgage - for example, a fifteen-year loan. Although your mortgage payments will probably be more, you can be paying less interest; so your equity will rise up faster. However, if you've had your current thirty year loan for a long time and the loan balance is relatively low, you may be able to do this without increasing your monthly payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing, please contact us at 949-235-3507. We are here for you.
Want to know more about refinancing? Call us at 949-235-3507.