Which Refinancing Loan Program is Best for You?

The number of refinance options available to borrowers can be overwhelming. Call us at 310-379-5997 and we will match you with the refinance program that fits you best. There are some general things to bear in mind while you consider your options.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a wise choice for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in the low interest rate for the term of your loan. If you are expecting to stay in your home for about five more years, a loan with a fixed rate may be an especially good fit for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced payments.

Refinancing to Cash Out

Are you refinancing primarily to pull out some home equity for an infusion of cash? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you will need to get a loan above the balance remaining on your current mortgage.Then you'll You will need to find a loan for more than the current balance with your existing mortgage in this case. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.

Consolidating Your Debt

Perhaps you want to pull out a portion of the equity in your home (cash out) to use toward other debt. If you have enough equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a lot of cash every month.

Paying it off Faster

Do you want to build up home equity more quickly, and pay off your mortgage more quickly? If this is your hope, your refinance mortgage can switch you to a loan program with a shorter term, such as a 15 year loan. Your mortgage payments will probably be higher than with a longer term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. However, if you've held your existing thirty year mortgage for a number of years and the remaining balance is somewhat low, you may be do this without raising your mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits in refinancing, please call us at 310-379-5997. We will help you reach your goals!

Curious about refinancing your home? Give us a call at 310-379-5997.

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