Refinancing: Which Option is for You?
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When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than applicants! Contact us at (714) 935-0775 and we will work with you to qualify you for the perfect loan program to fit your financial needs. In order to review your choices, you'll need to consider your goals for your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even as interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is especially a wise choice if you aren't planning a move within the next 5 years or so. However, an ARM with a low initial payment could be a wiser way to reduce your mortgage payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity with your refinance? Maybe you need to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. In this case, you will want to find a loan above the balance remaining of your existing mortgage loan.So you want to qualify for a loan for a higher amount than the remaining balance on your current mortgage loan. However, if your mortgage rate is high now and you've held it for a long time, you could be able to achieve your goals without a rise in your mortgage payment.
Do you want to cash out a portion of your home equity to consolidate other debt? Good idea! If you hold some higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Do you need to build up home equity more quickly, and have your mortgage paid off sooner? If this is your plan, your refinance mortgage can change you to a mortgage program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will usually be bigger than you were paying. Conversely, if your current long-term mortgage has a low balance remaining, and was closed a while ago, you might be able to make the move without paying more each month. To help you determine your options and the many benefits of refinancing, please contact us at (714) 935-0775. We will help you reach your goals!
Curious about refinancing your home? Call us at (714) 935-0775.