Choosing a Refinancing Option
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than borrowers! Contact us at (949) 486-3777 and we will match you with the refinance program that fits you best. In order to review your options, you can list what you want to achieve with the refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even as interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a good option. However, an ARM with a initial low payment could be a smarter way to reduce your mortgage payments if you plan on moving in the near future.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity in your refinance? It could be you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. Then you will want to find a loan higher than the balance remaining on your present mortgage loan.In this case, you You'll be looking for a loan for more than the balance remaining of your existing home loan in that case. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Consolidating Your Debt
Perhaps you'd like to cash out some equity (cash out) to put toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.
Paying it off Sooner
Are you planning to fatten your equity faster, and pay your mortgage loan off sooner? In that case, you need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. The payments will likely be higher than they were with the longer term mortgage loan, but the pay-off is: that you will pay substantially less interest and will build up equity more quickly. On the other hand, if your existing long-term loan has a small remaining balance, and was closed a number of years ago, you may be able to make the change without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at (949) 486-3777. We are here for you.
Curious about refinancing your home? Call us at (949) 486-3777.