Which Refinancing Loan Program is Right for You?

There are not as many loan options as there are applicants, but it seems like it at times! We can guide you to find the refinance loan program that will fit your financial situation the best. Contact us at 310-379-5997 to begin the process. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you now hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Even if rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in that low interest rate for the term of your loan. This is especially a wise option if you don't think you will 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 could be the best way to bring down your monthly payments.

Cashing Out

Is "cashing out" your primary reason for your refinance? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or go on a dream vacation. So you will want to find a loan above the remaining balance of your current mortgage loan.In that case, you'll want to qualify for a loan program for a bigger amount than the remaining balance on your current mortgage loan. However, if your interest rate is high now and you've held it for a long time, you may be able to accomplish your goals without an increase in your mortgage payment.

Consolidating Debt

Perhaps you want to cash out some of the home equity (cash out) to use toward other debt. If you have some debt with steep interest (like credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.

Getting a Shorter Term Loan

Are you dreaming of paying your loan off sooner, while beefing up your equity faster? Then, you'll need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. Even though your monthly payment amount will likely be more, you will be paying less interest; so your home equity will build up faster. But, you could be able to switch without a higher monthly payment if your long term mortgage was closed a while back, and the balance remaining is low enough. You may even make it lower! To help you understand your options and the multiple benefits in refinancing, please contact us at 310-379-5997. We are here for you.

Want to know more about refinancing? Call us at 310-379-5997.

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