Choosing a Refinancing Program
Even though it may seem like it sometimes, there are not as many refinance loan choices as there are borrowers! We can guide you to locate the loan program that will fit your situation the best. Contact us at (909) 467-1090 to get things started. What do you hope to achieve with refinancing? Keeping in mind the information below will help you narrow your choices.
Lowering Your Payments
Are achieving lower mortgage payments and an improved rate your main reasons for refinancing? If so, getting a low, fixed-rate loan might be a wise option for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise loan option. However, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate might be the best way to lower your monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your equity with your refinance? It could be you're going on a much needed vacation; you have to pay college tuition for your child; or you are updating your kitchen. With this in mind, you will want to get a loan higher than the balance remaining on your current mortgage loan.Then you You'll want to qualify for a loan for more than the remaining balance with your current mortgage loan in this case. However, if your loan interest rate is high now and you've held it for a long time, you could be able to reach your goals without making your monthly payments higher.
Consolidating Your Debt
Maybe you'd like to cash out some of the home equity (cash out) to put toward other debt. If you have a fair amount of home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of cash each month.
Building up Equity Faster
Are you hoping to fatten your equity faster, and pay off your mortgage sooner? If this is your goal, your refinance loan can switch you to a mortgage program with a shorter term, such as a 15 year loan. Your mortgage payments will likely be more than they were with a longer term mortgage loan, but the pay-off is: that you will pay substantially less interest and can build up equity more quickly. But, you could be able to switch without a higher monthly payment if your long term mortgage was closed a while ago, and the balance remaining is low. You could even make it lower! To help you determine your options and the many benefits of refinancing, please contact us at (909) 467-1090. We are here for you.