Refinancing: Which Loan Program is for You?

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The number of refinance options available can be overwhelming. Call us at 760.975.0255 and we can help you qualify for the right loan program to fit your financial needs. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.

Reducing Your Monthly Payments

Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even if rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low rate for the life of your loan. If you plan to stay in your home for about five more years, a fixed rate mortgage may be a particularly good option for you. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you plan on moving in the next few years.

Cashing Out

Is "cashing out" your main purpose for your refinance? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you'll need to apply for a loan higher than the balance remaining on your present mortgage loan.With this goal, you You will want to get a loan for more than the balance remaining on your present mortgage in that case. You might not increase your monthly payment, however, if you've had your current mortgage loan for a number of years, and/or your loan interest rate is high.

Consolidating Your Debt

Do you hold other debt, maybe with high interest, that you'd like to consolidate? If you own any higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of home equity.

Paying it off Faster

Do you need to build up equity more quickly, and pay off your mortgage more quickly? In that case, you need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. Even though your monthly payments will probably be increased, you will be paying less interest; so your equity amount will build up faster. But, you may be able to switch without a bigger monthly mortgage payment if your long term mortgage was closed a while ago, and the balance remaining is somewhat low. You could even pay less! To help you figure out your options and the many benefits in refinancing, please contact us at 760.975.0255. We are here to help you reach your goals!

Want to know more about refinancing your home? Give us a call at 760.975.0255.