Which Refinancing Program is Right for You?
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When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than applicants! We can guide you to select the refinance program that will fit your financial situation the best. Call us at 714-891-0266 to begin the process. In order to review your options, you should consider your goals for your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a wise choice for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can especially be a good option. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity with your refinance? It could be you need to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. In this case, you need to get a loan for more than the balance remaining on your current mortgage.In this case, you will want to find a loan program for a higher number than the remaining balance on your existing mortgage. However, if your interest rate is high now and you have held it for quite a few years, you may be able to accomplish your goals without making your monthly payments increase.
Do you have other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have the equity in your home for it, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars in your budget each month.
Paying it off Sooner
Are you hoping to fatten up your equity faster, and get your mortgage paid off sooner? If this is your hope, the refinance can switch you to a loan program with a shorter term, for example: a 15 year loan. Your monthly payments will likely be higher than with a long-term mortgage loan, but the pay-off is: you will pay considerably less interest and will build up equity quicker. However, if you have held your current thirty year loan for a number of years and the remaining balance is rather low, you might be do this without increasing your monthly mortgage payment — you might even be able to save! To help you understand your options and the numerous benefits of refinancing, please call us at 714-891-0266. We are here for you.
Curious about refinancing? Call us at 714-891-0266.