Refinancing: Which Option is for You?
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There are not as many refinance loan options as there are applicants, but it seems like it at times! We can help you choose the loan program that can fit your financial situation the best. Call us at 562-818-3502 to get things started. surveying your choices, you can consider your goals for the refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in that low interest rate for the life of your loan. If you plan to stay in your home for at least five more years, a fixed rate loan may be an especially good fit for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get lower payments.
Getting Out some Cash
Are you wanting to cash out some of your equity with your refinance? It could be you need to update your kitchen, pay your child's college tuition bill, or take a cruise. So you need to get a loan above the balance remaining on your present mortgage.Then you want to find a loan program for a bigger number than the balance remaining on your current mortgage. If you've had your current 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.
Consolidating Your Debt
Do you have other debt, maybe with a higher interest rate, that you want to consolidate? If you have built up some equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) could help save you a lot of cash each month.
Building up Equity Faster
Are you hoping to fatten up your equity faster, and pay your mortgage off sooner? Consider refinancing to a short-term loan, often a 15-year mortgage loan. You will be paying less interest and growing your home equity more quickly, even though your payments will generally be bigger than they were. But, you might be able to make the change without much increase in your monthly payment if your longer term mortgage 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 numerous benefits in refinancing, please contact us at 562-818-3502. We would love to help you reach your goals!
Curious about refinancing? Give us a call at 562-818-3502.