Which Refinancing Option is Best for You?
There aren't as many refinance loan programs as there are applicants, but it feels like it at times! Contact us at 310-379-5997 and we will match you with the refinance loan program that fits you best. What are your reasons for your refinance loan? Considering in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. 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 come up later, unlike with your ARM, when you close a fixed rate mortgage, you lock in that low rate for the life of your loan. This is particularly a wise idea if you don't plan to sell your home within the next five years or so. On the other hand, if you do see yourself moving within several years, an ARM with a low initial rate may be the best way to lower your monthly payment.
Are you refinancing primarily to pull out some home equity for an infusion of cash? Maybe you want to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. With this in mind, you will need to qualify for a loan higher than the remaining balance on your current mortgage.So you'll want to find a loan program for a higher number than the remaining balance on your existing mortgage. However, if your interest rate is currently high and you've held it for a long time, you may be able to accomplish your goals without making your monthly payments higher.
Do you hold other debt, perhaps with higher interest, that you want to consolidate? If you hold any higher interest debts (such as credit cards or car 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 Faster
Are you dreaming of paying your loan off faster, while building up your home equity quicker? If this is your hope, the refinance mortgage can move you to a mortgage program with a short, like a 15 year loan. Your monthly payments will probably be higher than they were with a longer term mortgage, but the pay-off is: that you will pay quite a bit less interest and will build up equity quicker. However, if you have had your existing 30-year mortgage loan for a long time and the loan balance is relatively low, you might be able to do this without raising your monthly mortgage payment — you may even be able to save! To help you determine 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? Call us: 310-379-5997.
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