Choosing a Refinancing Loan

There aren't as many loan programs as there are borrowers, but at times it feels like it! We can guide you to find the loan program that can fit your situation the best. Contact us at (949) 836-4925 to begin the process. What are your goals for refinancing? Considering in mind the information below will help you begin your decision process.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the ideal loan program for you. Maybe you are now in a loan with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low interest rate for the life of your mortgage. If you are planning to stay in your home for at least five more years, a loan with a fixed rate may be an especially good choice for you. However, if you do see yourself moving in the near future, an ARM 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.

Cashing Out

Are you hoping to cash out some of your home equity in your refinance? Your house needs updating; your daughter has been accepted to college and needs tuition; or you are planning a special vacation. So you need to find a loan above the remaining balance on your existing mortgage.With this goal, you will want However, if your loan interest rate is high now and you have held it for a long time, you could be able to accomplish your goals without making your monthly payments rise.

Debt Consolidation

Perhaps you'd like to pull out some of the home equity (cash out) to use toward other debt. If you hold some debt with steep interest (like credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of home equity.

Paying it off Sooner

Do you plan to build up home equity quicker, and have your mortgage paid off more quickly? If this is your goal, the refinance loan can move you to a loan program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity faster, even though your monthly payments will usually be more than you were paying. But, you might be able to make the change without much increase in your monthly payment if your long term loan was closed a while ago, and the remaining balance is somewhat low. You may even pay less! To help you understand your options and the multiple benefits in refinancing, please call us at (949) 836-4925. We can help you reach your goals!