Lower Your Monthly Payment, Consolidate Debt, or Take Cash Out
Do you want to take advantage of the recent drop in interest rates? Has your credit score improved, enabling you to get a lower rate? Would you like to switch to a different loan program? If so, a home refinance might be right for you!
Prospect Financial Group, Inc. offers the top California home refinance mortgage products available in the market today. With low down payments, lower interest rates, and reduced to zero closing costs, our home refinance loans can help improve your financial situation. Some of our most popular refinance products include Fixed-Rate Mortgages, Adjustable-Rate Mortgages, FHA Mortgages, VA Mortgages and HARP Refinances.
When you go through a home refinance, you take out a new mortgage with better terms to pay off your current mortgage. In some cases you can even combine a primary and secondary mortgage into a new loan.
Why Consider a Home Refinance Loan?
Lower Your Interest Rate
A lower interest rate will mean a lower monthly mortgage payment. Due to recent changes in the market or if your credit score has improved, you may be able to obtain a lower interest rate. A lower interest rate will also help build equity in your home at a faster rate.
Adjust the Length of Your Mortgage
Based on your current financial situation you may want to increase or decrease the length of your mortgage. A mortgage with a longer term will lower your monthly payments. Although an increase in the terms will take longer to pay off and will increase the amount of interest you pay over the years, it may be the best option for your financial situation. Decreasing the length of your mortgage allows you to pay your home loan off in a shorter period of time. A shorter mortgage term also often has a lower interest rate. If you are able to afford higher payments each month, decreasing the length of the mortgage may be a wise decision for you, allowing you to own your home free and clear in less time.
Change from an Adjustable-Rate Mortgage to a Fixed-Rate Mortgage
If you have an adjustable-rate mortgage, which is also known as an ARM, your monthly mortgage payments can fluctuate as interest rates change. With an ARM you run the risk of your monthly payments increasing or decreasing as rates change. If you are eligible to refinance while rates are low, you may want to switch to a fixed-rate mortgage. A fixed-rate will give you a set interest rate that will not go up if interest rates increase in the future.
Obtain an Adjustable-Rate Mortgage with Better Terms
If you currently have an adjustable-rate mortgage, you can refinance to another ARM with better terms. A new ARM could start out with an initial fixed period with a lower rate or you could lower your payment caps (meaning the interest rate cannot exceed a certain amount).
Get Cash Out from the Equity in Your Home
Your home’s equity is calculated by comparing the difference between the balance you owe on your mortgage and the value of the property. If you refinance for an amount greater than what you owe on the home, you take the difference out as a cash payment.
You may choose a cash-out if you need to make repairs on your home or pay for any unforeseen expenses that have come up. With a cash-out refinance, you are taking out the equity from your home and will have to build it back up again.
No matter what your financial situation, we can give you advice to help you determine why a refinance is beneficial for you. We can also help you to determine what type of refinance will work best for your needs. Call us today at 858-605-0952 to talk to a San Diego mortgage expert or apply online for a free quote.
For more information about refinancing, click here.