Refinancing: Which Program is for You?
There are a huge number of refinancing programs available to borrowers. Contact us at (619) 688-0011 and we will work with you to qualify you for the best loan program to fit your financial situation. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are getting lower monthly payments and a better rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan could be a good choice for you. Maybe you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Even if rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low interest rate for the life of your mortgage. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a great option. On the other hand, if you can see yourself selling your home in the near future, an ARM with a small initial rate may be the best way to lower your monthly payment.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Maybe you want to update your kitchen, pay your child's college tuition bill, or take your dream vacation. In this case, you need to apply for a loan for more than the balance remaining of your existing mortgage loan.Then you will want to find a loan for a higher number than the remaining balance on your current mortgage loan. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.
Maybe you hope to cash out some of the equity (cash out) to use toward other debt. If you have enough equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) may be able to save you a lot of money every month.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while beefing up your home equity more quickly? In that case, you'll want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will likely be bigger than you were paying. But, you could be able to switch without a higher monthly payment if your long term mortgage was closed a while back, and the balance remaining is low enough. You may even pay less! To help you figure out your options and the multiple benefits of refinancing, please contact us at (619) 688-0011. We are here for you.
Want to know more about refinancing? Give us a call at (619) 688-0011.