Selecting a Refinancing Option
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! We can guide you to select the refinance loan program that can fit your financial situation the best. Call us at (909) 467-1090 to get started. In order to review your choices, you will need to list your goals for the refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan may be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in the low interest rate for the life of your mortgage. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise choice. However, an ARM with a low intitial payment may be a better way to reduce your monthly payments if you expect to move within the near future.
Are you hoping to cash out some of your equity with your refinance? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. So you want to get a loan higher than the remaining balance of your present mortgage.With this goal, you'll need If you've had your current mortgage for a long time and/or have a loan with a high interest rate, you might\could be able to do this without making your mortgage payment higher.
Do you hold other debt, perhaps with a higher interest rate, that you need to consolidate? If you own some debt with steep interest (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while beefing up your home equity quicker? Consider refinancing to a shorterterm loan, like a 15-year mortgage loan. The payments will likely be more than they were with your longer term loan, but the pay-off is: that you will pay substantially less interest and will build up equity more quickly. On the other hand, if your existing longer term loan has a low balance remaining, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you understand your options and the numerous benefits in refinancing, please call us at (909) 467-1090. We are here to help you reach your goals!