Which Refinancing Loan Program is Best for You?

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Even though it may seem like it at times, there are not as many refinance options as there are borrowers! We can help you select the loan program that can fit your needs the best. Contact us at 714-713-9193 to begin the process. In order to review your options, you will need to list what you want to achieve with the refinance.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to live in your home for about five more years, a fixed-rate loan may be a particularly good fit for you. However, if you can see yourself selling your home in the near future, an ARM with a small initial rate could be the best way to lower your monthly payment. By refinancing your existing loan, your total finance charges may be higher over the life of the loan.

Cashing Out

Is "cashing out" your main reason for refinancing? It could be you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. So you will need to apply for a loan higher than the balance remaining of your present mortgage loan.With this goal, you'll You will need to get a loan for more than the current balance on your existing home loan in that case. If you've had your existing mortgage for quite a while and/or have a loan with high interest, you might\could be able to do this without increasing your monthly payment.

Debt Consolidation

Do you have other debt, perhaps with higher interest, that you'd like to consolidate? If you have the home equity to make it work, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars in your budget each month.

Building up Equity More Quickly

Are you wanting to fatten your equity faster, and pay off your mortgage loan more quickly? Then, you'll need to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. Although your mortgage payment amount will likely be more, you can be paying less interest; so your equity amount will build up faster. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low. You may even pay less! To help you figure out your options and the numerous benefits in refinancing, please call us at 714-713-9193. We are here to help you reach your goals!