Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than applicants! Contact us at 310-379-5997 and we can work with you to qualify you for the perfect loan program for your situation. In the interest of looking at your options, you will need to consider what you want to achieve with the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, the best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if rates get higher later, unlike with your ARM, when you close a fixed rate mortgage, you lock in that low interest rate for the life of your loan. This kind of loan can be especially a good idea if you don't plan to sell your home within the next five years or so. On the other hand, if you can see yourself moving before too long, an adjustable rate mortgage with a small initial rate may be the best way to lower your monthly payment.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? Maybe you're dreaming of a cruise; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you need to get a loan higher than the balance remaining of your existing mortgage.So you'll want If you've had your current mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.
Consolidating Your Debt
Do you want to cash out some home equity to consolidate additional debt? Good idea! If you hold any higher interest debts (like credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Paying it off Sooner
Are you wanting to fatten your home equity faster, and pay off your mortgage loan sooner? Consider refinancing with a shorterterm loan, such as a 15-year mortgage. Although your monthly payment amount will likely be more, you can be paying less interest; so your equity amount will rise up faster. But, you could be able to make the change without a bigger monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low. You could even make it lower! To help you understand your options and the many benefits in refinancing, please contact us at 310-379-5997. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call at 310-379-5997.
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