Refinancing: Which Option is for You?
Are you looking for a new mortgage loan? We will be glad to assist you! Give us a call today at (760) 415-7982. Want to get started? Apply Now
When you are overwhelmed with so many choices, it may seem like there are even more loan programs than borrowers! Call us at (760) 415-7982 and we will work with you to qualify you for the best refinance loan to fit your needs. surveying your options, you should list your goals for the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you are currently in a loan with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your mortgage loan, even as interest rates rise. If you aren't planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a wise option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Getting Out some Cash
Are you planning to cash out some of your equity in your refinance? Your house needs renovating; your daughter has been accepted to college and needs tuition; or you are taking your family on a cruise. So you will need to look for a loan above the remaining balance on your existing mortgage loan.Then you will want However, if your interest rate is currently high and you've held it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Do you want to cash out a portion of your home equity to consolidate additional debt? Yes you can! If you have built up some home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.
Switching to a Shorter Term Loan
Do you need to build up home equity quicker, and pay off your mortgage faster? Then, you'll want to look into refinancing to a short term mortgage - like a fifteen-year loan. The payments will probably be higher than they were with your long-term mortgage, but the pay-off is: you will pay quite a bit less interest and can build up equity more quickly. However, if you have had your existing thirty year mortgage loan for a long time and the loan balance is rather low, you might be do this without increasing your monthly mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits of refinancing, please contact us at (760) 415-7982. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us at (760) 415-7982.