Choosing a Refinancing Loan

There are an enormous number of refinancing programs available to borrowers. We can guide you to find the loan program that can fit your situation the best. Contact us at (818) 920-3522 to get started. What are your reasons for refinancing? Considering in mind the information below will help you begin your decision process.

Reducing Your Monthly Payments

Is your refinance primarily to lower your rate and monthly payments? If so, a good option might be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Even if interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a wise loan option. However, if you do see yourself moving before too long, an ARM with a low initial rate might be the ideal way to reduce your monthly payment.

Cashing Out

Is "cashing out" your main purpose for your refinance? Your home needs renovating; your daughter has gone to University and needs tuition money; or you are planning a special vacation. With this in mind, you'll need to get a loan above the remaining balance on your present mortgage.With this goal, you will need If you've had your existing mortgage loan for quite a while and/or have a mortgage loan with high interest, you may be able to do this without making your mortgage payment bigger.

Consolidating Debt

Do you have other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you own some higher interest debts (like credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the equity built up to make it work.

Paying it off Faster

Are you planning to fatten your home equity faster, and pay your mortgage off sooner? If this is your plan, the refinance can change you to a mortgage program with a short, such as a 15 year loan. Your mortgage payments will likely be higher than they were with the longer term loan, but in exchange, that you will pay quite a bit less interest and will build up equity quicker. Conversely, if your existing longer term mortgage loan has a small balance remaining, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at (818) 920-3522. We are here for you.