Which Refinancing Loan Program is Best for You?
The number of refinance options available can be overwhelming. We can guide you to find the loan program that can fit your financial situation the best. Call us at (909) 467-1090 to get things started. What are your reasons for refinancing? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are getting reduced payments and an improved rate your main reasons for refinancing? If so, your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a good loan option. However, if you do see yourself moving in the near future, an ARM mortgage with a small initial rate may be the ideal way to bring down your monthly payment.
Are you refinancing primarily to "cash out" some home equity? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. So you'll need to get a loan higher than the balance remaining of your current mortgage.In that case, you You will want to apply for a loan for a higher amount than the current balance of your current mortgage in that case. If you've had your existing mortgage for quite a while and/or have a mortgage with high interest, you may be able to do this without making your monthly payment higher.
Maybe you hope to pull out some equity in your home (cash out) to use 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 may be able to save several hundred dollars each month.
Switching to a Shorter Term Loan
Do you hope to build up equity more quickly, and have your mortgage paid off faster? Then, you'll need to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. You will be paying less interest and growing your home equity more quickly, although your monthly payments will likely be bigger than you were paying. But, you may be able to switch without a higher monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you figure out your options and the many benefits of refinancing, please contact us at (909) 467-1090. We are here to help you reach your goals!