Which Refinancing Option is Best for You?

The number of refinance options available to borrowers can be overwhelming. Contact us at (626)918-2419 and we will help you qualify for the right refinance loan to fit your situation. In the interest of looking at your options, you need to list your goals for your refinance.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best choice may be a low fixed-rate loan. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a loan in which the interest rate varies: an adjustable-rate mortgage (ARM). Different from the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your mortgage, even as interest rates rise. If you are planning to stay in your home for at least five more years, a fixed-rate mortgage may be a particularly good choice for you. On the other hand, if you can see yourself moving before too long, an adjustable-rate mortgage with a small initial rate might be the best way to bring down your monthly payment.

Refinancing to Cash Out

Are you hoping to cash out some of your home equity with your refinance? Your home needs updating; your son has been accepted to college and needs tuition money; or you are planning a special vacation. So you need to get a loan higher than the balance remaining of your existing mortgage.In that case, you'll need However, if your mortgage rate is high now and you've held it for quite a few years, you may be able to reach your goals without an increase in your mortgage payment.

Consolidating Your Debt

Do you want to cash out a portion of your home equity to consolidate additional debt? Great plan! If you have a fair amount of home equity, taking care of other debt with higher interest rates than your mortgage loan (credit cards or home equity loans, for example) may help save you a lot of money each month.

Switching to a Shorter-term Loan

Are you wanting to fatten your equity faster, and pay your mortgage loan off sooner? If this is your wish, your refinance can move you to a mortgage program with a shorter term, for example, a 15-year loan. Your mortgage payments will likely be higher than they were with your longer-term loan, but in exchange, you will pay considerably less interest and can build up equity quickly. However, if you've held your existing thirty-year mortgage loan for a long time and the loan balance is relatively low, you could do this without raising your mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing,

Want to know more about refinancing? Give us a call: (626)918-2419.