Refinancing: Which Loan Program is for You?
|Shopping for a mortgage? We'd be thrilled to answer your questions about your mortgage needs! Call us at 661-222-9555. Want to get started? Apply Now.|
When you are overwhelmed with so many options, it may seem like there are even more loan programs than applicants! We can help you locate the loan program that can fit your financial situation the best. Contact us at 661-222-9555 to begin the process. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best choice may be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even if interest rates rise. If you expect to stay in your home for at least five more years, a loan with a fixed rate may be a particularly good fit for you. However, an ARM with a low initial payment may be a smarter way to reduce your monthly payments if you expect to move in the next few years.
Is "cashing out" your primary purpose for refinancing? Perhaps you want to make home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you will want to get a loan higher than the remaining balance on your current mortgage.So you will want 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 making your monthly payment higher.
Perhaps you'd like to pull out a portion of the home equity (cash out) to put toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars in your budget each month.
Paying it off Sooner
Are you hoping to fatten up your home equity faster, and pay your mortgage loan off more quickly? If this is your goal, your refinance mortgage can change you to a mortgage loan program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your home equity faster, although your mortgage payments will generally be higher than you were paying. However, if you have held your current thirty-year mortgage for a number of years and the loan balance is relatively low, you might be able to do this without raising your monthly payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please call us at 661-222-9555. We would love to help you reach your goals!