Selecting a Refinancing Program

Although it may seem like it sometimes, there are not as many loan programs as there are applicants! Contact us at 909-660-8333 and we can help you qualify for the perfect refinance program to fit your financial needs. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.

Lowering Your Payments

Are getting reduced monthly payments and a better rate your main reasons for refinancing? Then your best option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your mortgage, even if interest rates rise. A fixed-rate mortgage is especially a good choice if you don't plan to sell your home within the next five years or so. However, if you can see yourself selling your home in the near future, an adjustable rate mortgage with a low initial rate might be the ideal way to lower your monthly payment.

Refinancing to Cash Out

Are you hoping to cash out some of your home equity with your refinance? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or take your family on a dream vacation. Then you will want to get a loan for more than the remaining balance of your present mortgage loan.In this case, you will You'll need to qualify for a loan for more than the remaining balance of your present home loan in this case. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.

Consolidating Debt

Do you want to pull out some equity to consolidate additional debt? Great plan! If you have a fair amount of equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might help save you a chunk of cash each month.

Getting a Shorter Term Loan

Do you hope to build up home equity more quickly, and have your mortgage paid off more quickly? Consider refinancing to a short-term loan, such as a 15-year mortgage loan. You will be paying less interest and growing your equity faster, even though your mortgage payments will likely be higher than they were. However, if you have had your current 30 year loan for a long time and the remaining balance is rather low, you may be do this without raising your monthly mortgage payment — it's even possible to save! To help you determine your options and the many benefits of refinancing, please call us at 909-660-8333. We would love to help you reach your goals!