Refinancing: Which Loan Program is for You?
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Although it may seem like it at times, there aren't as many loan programs as there are applicants! We can guide you to choose the loan program that can fit your needs the best. Contact us at 714-939-3863 to get things started. There are several things to have in mind while you look at the choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good option may be a low fixed-rate loan. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when rates get higher later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in the low rate for the term of your loan. If you expect to live in your home for about five more years, a fixed-rate loan may be a particularly good fit for you. However, if you can see yourself moving within the next few years, an ARM mortgage with a low initial rate may be the best way to lower your monthly payment.
Getting Out some Cash
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you plan to renovate your home. Then you need to apply for a loan for more than the remaining balance on your existing mortgage loan.Then you'll want However, if your mortgage rate is currently high and you've had it for a long time, you may be able to achieve your goals without a rise in your mortgage payment.
Do you hold other debt, maybe with high interest, that you need to consolidate? If you own any debt with steep interest (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Building up Equity More Quickly
Are you dreaming of paying your loan off sooner, while building up your equity faster? In that case, you'll need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage program. You will be paying less interest and increasing your equity faster, although your payments will likely be higher than they were. But, you may be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you figure out your options and the numerous benefits of refinancing, please call us at 714-939-3863. We will help you reach your goals!
Want to know more about refinancing? Give us a call: 714-939-3863.