Selecting a Refinancing Option
There aren't as many loan programs as there are applicants, but it feels like it sometimes! Contact us at 818-999-6444 and we will work with you to qualify you for the best refinance loan program for your needs. There are some general questions to ask yourself while you look at your options.
Making Your Payments Lower
Are achieving better monthly payments and a better rate your main refinance goals? In that case, a good option could be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate varies. Even when rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in that low interest rate for the life of your loan. A fixed-rate mortgage can be especially a good idea if you don't think you'll be selling your home within the next five years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Getting Out some Cash
Are you planning to cash out some of your home equity in your refinance? It could be you need to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. In this case, you'll want to find a loan for more than the remaining balance on your present mortgage.In this case, you will You will need to qualify for a loan for more than the balance remaining on your existing mortgage in this case. However, if your mortgage rate is currently high and you've had it for a long time, you could be able to accomplish your goals without making your monthly payments rise.
Do you want to cash out some of your equity to consolidate other debt? Good idea! If you have a fair amount of home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of money each month.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while beefing up your equity faster? Then, you want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will generally be more than they were. However, if you've had your current thirty-year mortgage for a long time and the remaining balance is rather low, you may be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please contact us at 818-999-6444. We are here for you.
Curious about refinancing your home? Give us a call: 818-999-6444.