Which Refinancing Loan Program is Right for You?
The number of refinance options available to borrowers can be overwhelming. Contact us at 310-379-5997 and we will match you with the loan program that best fits you. What are your reasons for refinancing? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan may be a good choice for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even when interest rates rise. If you expect to stay in your home for at least five more years, a loan with a fixed rate may be a particulary good option for you. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your equity in your refinance? Your home needs new carpet; your daughter has been accepted to University and needs tuition; or you are planning a special vacation. With this in mind, you will want to apply for a loan above the balance remaining of your current mortgage.So you will want You might not have an increase in your mortgage payemnt, however, if you've had your current loan for a number of years, and/or your loan interest rate is high.
Perhaps you want to cash out some of the home equity (cash out) to put toward other debt. If you have any higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while beefing up your home equity more quickly? If this is your goal, your refinance loan can change you to a loan program with a shorter term, for example: a 15 year loan. Although your monthly payments will probably be more, you will be paying less interest; so your equity will build up faster. However, if you have had your current 30-year loan for a number of years and the loan balance is somewhat low, you might be do this without raising your monthly mortgage payment — you might even be able to save! To help you understand your options and the many benefits of refinancing, please call us at 310-379-5997. We are here for you.
Curious about refinancing? Give us a call: 310-379-5997.
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