Choosing a Refinancing Program

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There are a huge number of refinancing programs available to borrowers. We can help you locate the refinance program that will fit your financial situation the best. Call us at (805) 432-4898 to begin the process. What are your goals for refinancing? Keeping in mind the information below will help you narrow your choices.

Making Your Payments Lower

Are getting lower payments and an improved rate your main reasons for refinancing? Then your best choice might be a low fixed-rate loan. Perhaps 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). Even if interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. This kind of loan can be especially a wise choice if you don't plan to move within the next 5 years or so. On the other hand, if you do see yourself moving within the next few years, an adjustable rate mortgage with a small initial rate may be the ideal way to lower your monthly payment.

Cashing Out

Are you refinancing primarily to pull out some of your equity for an infusion of cash? Maybe you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. With this in mind, you'll need to apply for a loan above the balance remaining of your current mortgage loan.So you'll want to qualify for a loan program for a bigger amount than the remaining balance on your present mortgage loan. You might not have an increase in your monthly payment, however, if you've had your existing loan for a long time, and/or your interest rate is high.

Debt Consolidation

Do you have other debt, perhaps with a higher interest rate, that you need to consolidate? If you have a fair amount of equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) could be able to save you a chunk of cash every month.

Paying it off Faster

Are you planning to fatten up your home equity faster, and get your mortgage paid off sooner? If this is your hope, the refinance loan can change you to a loan program with a short, such as a 15 year loan. You will be paying less interest and growing your equity faster, even though your payments will likely be bigger than you were paying. However, if you've held your current 30-year mortgage loan for a number of years and the loan balance is relatively low, you could be do this without increasing your monthly mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please contact us at (805) 432-4898. We are here for you.

Want to know more about refinancing? Call us at (805) 432-4898.