Refinancing: Which Option is for You?
There aren't as many refinance loan options as there are borrowers, but sometimes it feels like it! Call us at (909) 467-1090 and we can work with you to qualify you for the right loan program to fit your financial needs. What are your reasons for your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, a good choice could be a low fixed-rate loan. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the term of your loan. A fixed-rate mortgage can be especially a good idea if you don't think you'll be moving within the next five years or so. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower monthly payments.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity with your refinance? It could be you're dreaming of a cruise; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you need to find a loan higher than the balance remaining of your current mortgage.Then you will need However, if your loan interest rate is high now and you've held it for a long time, you could be able to accomplish your goals without a rise in your mortgage payment.
Consolidating Your Debt
Perhaps you'd like to pull out a portion of the equity in your home (cash out) to put toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars monthly.
Paying it off Faster
Are you wanting to fatten up your equity faster, and pay your mortgage off sooner? Consider refinancing with a short-term loan, often a 15-year mortgage. Although your monthly payment amount will probably be more, you can save on interest; so your equity will build up faster. But, you could be able to switch without a bigger monthly mortgage payment if your longer term mortgage was closed a while back, and the balance remaining is low enough. You may even pay less! To help you figure out your options and the many benefits in refinancing, please contact us at (909) 467-1090. We are here for you.