Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many options, it may seem as if there are even more loan programs than borrowers! Call us at 310-379-5997 and we will match you with the refinance loan program that fits you best. What are your reasons for refinancing? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are achieving lower payments and a lower rate your main refinance goals? In that case, a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even when interest rates rise. This kind of loan is particularly a wise idea if you don't think you'll be moving within the next 5 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 to get reduced payments.
Are you planning to cash out some of your equity in your refinance? Maybe you need to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. Then you will need to apply for a loan for more than the remaining balance on your current mortgage loan.Then you'll need If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment bigger.
Consolidating Your Debt
Do you have other debt, maybe with high interest, that you need to consolidate? If you have the equity in your home for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your budget each month.
Building up Equity Faster
Are you planning to fatten your equity faster, and get your mortgage paid off sooner? If this is your wish, your refinance can change you to a mortgage program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your payments will generally be bigger than you have been paying. But, you could be able to make the change without much increase in your monthly payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you figure out your options and the multiple benefits of refinancing, please contact us at 310-379-5997. We are here for you.
Want to know more about refinancing your home? Give us a call at 310-379-5997.
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