Refinancing: Which Program is for You?
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The number of refinance options available is truly breathtaking. We can guide you to find the refinance program that will fit your needs the best. Contact us at 714-737-6717 to get started. surveying your choices, you will need to think about what you want to achieve with your refinance.
Making Your Payments Lower
Are achieving lower monthly payments and an improved rate your main reasons for refinancing? If so, the best choice may be a low fixed-rate loan. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even when interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise option. However, if you can see yourself selling your home within several years, an ARM mortgage with a low initial rate might be the ideal way to reduce your monthly payments. Due to refinancing, your total finance charges can be higher over the life of the loan.
Refinancing to Cash Outon Your Equity
Is your refinance goal mainly to "cash out" some home equity? Maybe you're going on a much needed vacation; you have to pay college tuition for your child; or you are updating your kitchen. Then you'll want to find a loan higher than the remaining balance of your existing mortgage.With this goal, you'll need However, if your loan interest rate is currently high and you have held it for quite a few years, you could be able to achieve your goals without making your monthly payments rise.
Do you want to cash out some of your home equity to consolidate additional debt? Excellent idea! If you have the home equity for it, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars a month.
Building up Equity Faster
Are you dreaming of paying off your loan faster, while building up your equity quicker? If this is your hope, the refinance mortgage can move you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your equity faster, even though your payments will likely be more than they were. On the other hand, if your current longer term mortgage loan has a small balance remaining, and was closed a while ago, you may even be able to make the change without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at
714-737-6717. We would love to help you reach your goals!
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