Cash-Out or Cash Back Refinance
This plan allows you to refinance your mortgage for more than you currently owe. The difference and the equity is converted into cash for the homeowner.
This plan allows you to refinance your mortgage for more than you currently owe. The difference and the equity is converted into cash for the homeowner.
If you currently have a high fixed-rate mortgage and the rates have dropped due to market conditions, then you may want to refinance to a low fixed-rate loan. Also, if you have an ARM, you might consider this option in order to get the security of a fixed rate. Even if your adjustable rate is low now, it is not guaranteed to remain that way; but if you get a low fixed-rate loan, then you lock that low rate in for the life of the loan. This option is a good choice if you are not planning on moving within the next five years.
If your main goal is to quickly build up equity and to pay off your mortgage sooner, then the shorter-term loan is probably your best choice. A lot of times, if you refinance to this type of loan, your monthly payments will be higher, but you will pay substantially less interest and your mortgage will be paid off sooner. Also, you would benefit from a larger tax deduction on interest if you move from a 30-year fixed to a 15-year fixed loan. There are some cases, however, in which you may be able to refinance to a shorter-term loan without raising your monthly payment -if you’ve had your current mortgage for enough years.
If your current monthly payments are higher than is comfortable for your financial situation, then you might want to consider refinancing to a longer-term loan. This will result in a decrease in your monthly payments, since you will have more time to repay the loan. Examining your current mortgage and knowing how you would like to improve it are the first steps you need to take when starting the refinancing process. Once you know this, you can choose the option that will best help you achieve your goals.
Mortgage Planner/Planificador Hipotecario // NMLS #227518
A lot of people think I’m in the business of doing loans. I really don’t look at it that way. I’m helping you create, perhaps, the largest debt in your life, and therefore, I have a professional responsibility to help you manage that debt. I see my primary role as helping my clients integrate the mortgage loan they select into their overall long and short-term financial and investment goals, as well as helping them meet their payment and equity objectives.
With over 30 years in the mortgage industry, my mission is to help my clients beyond a single transaction. The ultimate goal is to create and maintain clients for life!
Mucha gente cree que estoy en el negocio de hacer préstamos. Realmente, yo no lo percibo de esa manera. Te estoy ayudando a crear, quizás, la deuda mas grande de tu vida y, por tanto, tengo la responsabilidad profesional de ayudarte a manejar dicha deuda. Yo veo mi rol, primariamente, como el acto de asistir a mis clientes en su situación financiera general y de objetivos de inversión, tanto de corto como de largo plazo, al integrar los préstamos hipotecarios seleccionados por ellos, así como también, al asistirles en el cumplimiento de sus pagos y de sus objetivos de capital.
Con más de 30 años en la industria hipotecaria, mi misión es ayudar a mis clientes más allá de una única transacción. ¡El objetivo último es crear y mantener clientes para toda la vida!