Selecting a Refinancing Loan
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than applicants! We can help you find the refinance program that can fit your situation the best. Call us at (909) 467-1090 to begin the process. In the interest of looking at your choices, you can consider your goals for the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, the best choice may be a low fixed-rate loan. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set that low rate for the life of your mortgage. If you are expecting to live in your home for about five more years, a loan with a fixed rate may be a particulary good choice for you. However, an ARM with a initial low payment could be a better way to reduce your monthly payments if you see yourself moving in the next few years.
Getting Out some Cash
Is "cashing out" your primary reason for refinancing? Perhaps you want to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. With this in mind, you want to find a loan for more than the remaining balance of your existing mortgage.With this goal, you will You'll want to apply for a loan for more than the current balance on your present mortgage in that case. If you've had your current mortgage loan for a long time and/or have a mortgage whose interest rate is high, you may be able to do this without making your monthly payment higher.
Consolidating Your Debt
Do you hold other debt, maybe with higher interest, that you'd like to consolidate? If you have a fair amount of equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a lot of cash each month.
Paying it off Faster
Are you planning to fatten up your equity faster, and get your mortgage paid off sooner? Consider refinancing to a short-term loan, often a 15-year mortgage. Although your mortgage payments will usually be more, you can save on interest; so your home equity will build up faster. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term mortgage was closed a while back, and the balance remaining is low. 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 will help you reach your goals!