Which Refinancing Program is Best for You?
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There aren't as many refinance loan programs as there are applicants, but at times it feels like it! Call us at 951-246-9944 and we will help you qualify for the perfect refinance loan program for your situation. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the loan, even as interest rates rise. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a great choice. However, an ARM with a low initial payment may be a wiser way to reduce your mortgage payments if you see yourself moving in the near future.
Getting Out some Cash
Are you planning to cash out some of your equity with your refinance? Maybe you need to update your kitchen, take care of your college kid's tuition, or take a cruise. In this case, you'll want to get a loan for more than the balance remaining on your present mortgage.With this goal, you want to qualify for a loan program for a bigger amount than the remaining balance on your current mortgage loan. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you own any debt with higher interest (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough home equity.
Switching to a Shorter Term Loan
Are you planning to fatten your home equity faster, and pay your mortgage off sooner? You should consider refinancing to a shorterterm loan, like a 15-year mortgage loan. The mortgage payments will probably be more than with your longer term loan, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. However, if you've had your current thirty-year mortgage for a number of years and the remaining balance is somewhat low, you might be do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please call us at 951-246-9944. We are here for you.