Refinancing: Which Option is for You?
Although it seems like it sometimes, there aren't as many loan programs as there are applicants! We can help you locate the refinance loan program that can fit your financial situation the best. Contact us at (650) 689-5684 to get things started. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good choice might be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest 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. If you plan to stay in your home for about five more years, a fixed-rate loan may be an especially good fit for you. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Is "cashing out" your main purpose for your refinance? Maybe you want to make home improvements, take care of your college kid's tuition, or take your dream vacation. With this in mind, you want to qualify for a loan above the remaining balance on your existing mortgage loan.With this goal, you will want to need to qualify for a loan program for a bigger amount than the balance remaining on your present mortgage loan. However, if your loan interest rate is high now and you've held it for quite a few years, you could be able to reach your goals without a rise in your mortgage payment.
Perhaps you'd like to cash out some of the home equity (cash out) to use toward other debt. If you have some debt with high interest (like credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the right amount of equity.
Building up Equity More Quickly
Are you wanting to fatten your equity faster, and get your mortgage paid off more quickly? If this is your wish, the refinance can move you to a mortgage loan program with a short, like a 15 year loan. You will be paying less interest and increasing your equity faster, even though your monthly payments will generally be higher than they were. However, if you have had your existing thirty year mortgage for a long time and the remaining balance is rather low, you could be able to do this without increasing your monthly payment — you could even be able to save! To help you understand your options and the multiple benefits in refinancing, please call us at (650) 689-5684. We would love to help you reach your goals!
Curious about refinancing your home? Call us at (650) 689-5684.