Refinancing: Which Option is for You?
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There are not as many loan program choices as there are borrowers, but at times it feels like it! We can help you select the refinance program that can fit your needs the best. Call us at (818) 874-9900 to get things started. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan may be a wise choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low rate for the term of your mortgage. If you are planning to stay in your home for about five more years, a fixed rate loan may be an especially good option for you. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced payments.
Getting Out some Cash
Is your refinance goal primarily to pull out some equity for an infusion of cash? Your house needs new carpet; your daughter has been accepted to University and needs tuition money; or you are planning a special vacation. So you'll want to get a loan for more than the remaining balance of your present mortgage.With this goal, you want to find a loan program for a higher number than the remaining balance on your existing mortgage. 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 mortgage payments rise.
Do you have other debt, perhaps with high interest, that you need to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars monthly.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while beefing up your equity faster? If this is your plan, the refinance mortgage can switch you to a mortgage loan program with a shorter term, like a 15 year loan. The payments will likely be higher than with a longer term loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. Conversely, if your existing long-term mortgage has a low remaining balance, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at (818) 874-9900. We are here for you.
Curious about refinancing your home? Call us at (818) 874-9900.