Refinancing: Which Loan Program is for You?
The huge number of refinance options available to borrowers is truly breathtaking. Contact us at (909) 467-1090 and we'll work with you to qualify you for the perfect loan program for your financial situation. surveying your options, you need to determine what you want to achieve with your refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. 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 if rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low interest rate for the term of your mortgage. If you aren't planning on moving in the near future (about 5 years), a fixed-rate mortgage can especially be a good choice. However, an ARM with a low intitial payment may be a smarter way to lower your monthly payments if you expect to move in the near future.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Your home needs renovating; your son has been accepted to University and needs tuition money; or you are taking your family on a cruise. So you will need to get a loan above the balance remaining on your existing mortgage.Then you You'll be looking for a loan for a bigger amount than the remaining balance of your existing mortgage in this case. However, if your interest rate is currently high and you have held it for quite a few years, you could be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you have other debt, maybe with a high interest rate, that you need to consolidate? If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars per month.
Switching to a Shorter Term Loan
Are you planning to fatten up your equity faster, and pay off your mortgage loan sooner? Consider refinancing to a short-term loan, like a 15-year mortgage loan. The payments will probably be more than with your long-term mortgage loan, but in exchange, that you will pay substantially less interest and will build up equity more quickly. But, you might be able to make the change without a bigger monthly payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low. You could even make it lower! To help you determine your options and the numerous benefits of refinancing, please call us at (909) 467-1090. We are here for you.