Selecting a Refinancing Loan

When you are overwhelmed with so many choices, it may seem as if there are even more refinance programs than borrowers! Contact us at (949) 486-3777 and we will help you qualify for the best refinance program to fit your situation. What are your reasons for refinancing? Considering in mind the information below will help you narrow your choices.

Reducing Your Monthly Payments

Are getting reduced mortgage payments and a lower rate your main reasons for refinancing? Then a low, fixed rate loan may be the ideal option for you. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a good choice if you aren't expecting a move within the next five years or so. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower payments.

Refinancing to Cash Out

Is "cashing out" your main reason for refinancing? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. So you will need to look for a loan higher than the balance remaining on your present mortgage.Then you You will be looking for a loan for a bigger amount than the remaining balance with your existing mortgage in that case. You may not have an increase in your monthly payemnt, though, if you have had your existing mortgage for a number of years, and/or your loan interest rate is high.

Consolidating Your Debt

Do you want to pull out some of your home equity to consolidate other debt? Yes you can! If you have the home equity for it, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars in your budget each month.

Paying it off Sooner

Are you planning to fatten your equity faster, and get your mortgage paid off more quickly? If this is your plan, your refinance loan can change you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your payments will usually be higher than they were. However, if you've had your current thirty-year loan for a long time and the loan balance is rather low, you could be do this without raising your mortgage payment — you may even be able to save! To help you determine your options and the numerous benefits of refinancing, please contact us at (949) 486-3777. We can help you reach your goals!

Want to know more about refinancing your home? Give us a call: (949) 486-3777.