Refinancing: Which Loan Program is for You?
There are not as many refinance loan programs as there are applicants, but it seems like it at times! We can guide you to find the refinance loan program that can fit your needs the best. Call us at (909) 467-1090 to begin the process. There are several questions to ask yourself as you look at your options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best option might be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low rate for the life of your mortgage. This kind of loan is especially a wise idea if you don't think you'll be selling your home within the next five years or so. However, an ARM with a initial low payment may be a better way to reduce your payments if you expect to move in the next few years.
Is "cashing out" your primary reason for refinancing? Your house needs updating; your daughter has been accepted to University and needs tuition; or you have a special family vacation planned. In this case, you'll need to get a loan for more than the remaining balance on your current mortgage.So you'll want If you've had your existing mortgage for a long time and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Perhaps you hope to cash out a portion of the equity in your home (cash out) to use toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars monthly.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while beefing up your equity more quickly? In that case, you'll want to find out about refinancing to a short term mortgage loan - like a fifteen-year loan. The payments will likely be higher than with a longer term mortgage loan, but the pay-off is: you will pay considerably less interest and will build up equity quicker. On the other hand, if your current longer term loan has a small balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at (909) 467-1090. We can help you reach your goals!