Refinancing: Which Loan Program is for You?

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There are an enormous number of refinancing options available to borrowers. Contact us at (949) 837-1559 and we'll help you qualify for the right loan program for your financial needs. What are your goals for refinancing? Keeping in mind the following will help you begin your decision process.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan may be a good choice for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even as interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a great choice. However, an ARM with a low initial payment may be a smarter way to reduce your mortgage payments if you expect to move in the next few years.

Cashing Out

Are you refinancing primarily to "cash out" some home equity? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you'll want to apply for a loan above the balance remaining of your present mortgage loan.With this goal, you'll want However, if your interest rate is high now and you've held it for quite a few years, you may be able to accomplish your goals without an increase in your mortgage payment.

Consolidating Debt

Do you want to cash out some of your equity to consolidate other debt? Good plan! If you have the home equity for it, paying off other high interest debt (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.

Building up Equity Faster

Are you dreaming of paying your loan off sooner, while building up your equity faster? Consider refinancing with a short-term loan, like a 15-year mortgage. Your payments will likely be higher than with a longer term loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity quicker. But, you might be able to switch without a higher monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is small. You may even make it lower! To help you figure out your options and the multiple benefits in refinancing, please contact us at (949) 837-1559. We will help you reach your goals!

Curious about refinancing? Give us a call at (949) 837-1559.