Refinancing: Which Loan Program is for You?
There are an enormous number of refinancing programs available to borrowers. We can help you select the refinance program that can fit your financial situation the best. Call us at (909) 467-1090 to begin the process. In order to review your choices, you need to consider what you want to achieve with the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low interest rate for the life of your mortgage. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a wise option. However, an ARM with a low intitial payment may be a smarter way to reduce your payments if you plan on moving in the next few years.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you plan to renovate your home. In this case, you will want to look for a loan for more than the balance remaining of your current mortgage loan.With this goal, you will need If you've had your existing mortgage loan for quite a while and/or have a mortgage whose interest rate is high, you might\could be able to do this without making your monthly payment bigger.
Maybe you'd like to pull out some of the home equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars in your monthly budget.
Getting a Shorter Term Loan
Do you plan to build up equity more quickly, and pay off your mortgage more quickly? If this is your plan, the refinance mortgage can move you to a mortgage loan program with a short, like a 15 year loan. Even though your mortgage payments will likely be more, you will save on interest; so your home equity will rise up faster. However, if you have had your current 30 year loan for a number of years and the loan balance is rather low, you might be able to do this without raising your monthly payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing, please call us at (909) 467-1090. We are here for you.