Comparing Loan Types -- Your Mortgage Refinance Options

Gil Mackey
LoanBiz Columnist

It's critical before you touch your California home loan that you consider carefully the wide variety of refinancing available to you. There are options available to fit just about anyone's situation. Understand yours before you decide.

Interest Only Refinancing

Getting an interest only mortgage refinance is a great short-term fix for certain homeowners. If you need to lower your home loan payment for a limited time or have equity to burn and want to use it to make your life a little easier this could be the right option for your refinance.

Adjustable Rate Mortgage Refinance

Like the interest only mortgage, this refinancing should be considered a short-term solution. If you need to get lower monthly payments right now, and if you have a plan for handling the higher payments that might come, then this could be the right California home loan for you. Make sure to ask about prepayment penalties for future refinancing.

Hybrid Payment Options

There are some home loans that give you a payment options. Some products even allow you to choose, from one month to the next, between making an interest only payment to an accelerated payment. If your income fluctuates (you have seasonal income, are in sales, or self-employed) this could be the right refinancing for you.

Fixed-Rate Refinancing

A fixed-rate home loan offers stability and easy budgeting. If you want to know exactly how much you'll need for each monthly mortgage payment, then take a look at a fixed-rate mortgage.

Choosing Your Mortgage Refinance

The bottom line is this: before you make a single call about mortgage refinancing understand first why you need to refinance. Understanding your goals will help you pick the right home loan.

About the Author
Gil Mackey has been a writer and artist for the past twenty years. In addition to freelance writing, he writes for his local paper, and lives with his two children in Nevada.