Refinancing: Which Option is for You?
There are not as many refinance loan options as there are borrowers, but it feels like it sometimes! Call us at (949) 486-3777 and we will work with you to qualify you for the perfect refinance loan program for your financial needs. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving reduced payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be the best choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you aren't planning on moving in the near future (about five years), a fixed rate mortgage loan can particularly be a wise choice. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced monthly payments.
Getting Out some Cash
Are you refinancing primarily to "cash out" some home equity? Your home needs updating; your son has been accepted to college and needs tuition; or you are planning a special vacation. With this in mind, you need to find a loan for more than the balance remaining of your present mortgage loan.In this case, you'll need If you've had your current mortgage loan for quite a while and/or have a loan with a high interest rate, you might\could be able to do this without increasing your monthly payment.
Do you want to cash out a portion of your home equity to consolidate additional debt? Excellent idea! If you own some higher interest debts (like credit cards or vehicle 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.
Building up Equity Faster
Do you hope to build up equity more quickly, and have your mortgage paid off more quickly? In that case, you'll need to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. The payments will likely be higher than with a longer term mortgage loan, but in exchange, that you will pay substantially less interest and can build up equity more quickly. Conversely, if your current longer term mortgage has a low balance remaining, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at (949) 486-3777. We are here for you.
Want to know more about refinancing your home? Give us a call: (949) 486-3777.