Selecting a Refinancing Option
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The number of refinance options available can be overwhelming. Call us at (760) 547-2080 and we'll work with you to qualify you for the right loan program to fit your financial needs. What are your goals for your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Perhaps you are currently 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 will stay at a certain low rate for the term of your mortgage loan, even if interest rates rise. If you are expecting to stay in your home for about five more years, a fixed rate mortgage may be a particularly good option for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower mortgage payments.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? Your house needs improvements; your daughter has gone to University and needs tuition; or you are taking your family on a cruise. So you will need to find a loan above the balance remaining of your existing mortgage loan.With this goal, you will want However, if your interest rate is high now and you have held it for quite a few years, you could be able to achieve your goals without a rise in your mortgage payment.
Do you hold other debt, maybe with high interest, that you want to consolidate? If you have a fair amount of equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a lot of cash every month.
Paying it off Faster
Are you dreaming of paying your loan off faster, while beefing up your equity more quickly? In that case, you'll need to find out about refinancing to a short term mortgage - like a fifteen-year loan. Your mortgage payments will probably be higher than they were with your long-term loan, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. However, if you've had your existing thirty year mortgage for a number of years and the loan balance is somewhat low, you might be do this without increasing your mortgage payment — you could even be able to save! To help you understand your options and the numerous benefits in refinancing, please call us at (760) 547-2080. We are here for you.
Curious about refinancing? Call us at (760) 547-2080.