Refinancing: Which Loan Program is for You?

When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than applicants! We can guide you to find the loan program that will fit your financial situation the best. Call us at 6507631924 to get things started. In order to review your choices, you need to list your goals for your refinance.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you are currently in a loan with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be particularly a good idea if you don't think you'll be moving within the next 5 years or so. However, an ARM with a low intitial payment may be a wiser way to reduce your payments if you plan on moving in the near future.

Refinancing to Cash Out

Is "cashing out" your main reason for refinancing? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. Then you need to get a loan higher than the balance remaining on your existing mortgage loan.So you'll You'll need to get a loan for more than the remaining balance on your present mortgage in that case. You might not have an increase in your mortgage payemnt, though, if you've had your existing loan for a number of years, and/or your interest rate is high.

Consolidating Debt

Do you want to pull out some of your home equity to consolidate additional debt? Good plan! If you own any debt with steep interest (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.

Building up Equity More Quickly

Are you dreaming of paying your loan off sooner, while building up your home equity more quickly? Then, you need to find out about refinancing to a short term mortgage - such as a fifteen-year loan. The mortgage payments will likely be higher than with the longer term loan, but the pay-off is: that you will pay considerably less interest and will build up equity more quickly. But, you may be able to switch without much increase in your monthly payment if your long term loan was closed a while ago, and the balance remaining is low. You could even pay less! To help you understand your options and the multiple benefits in refinancing, please call us at 6507631924. We will help you reach your goals!

Curious about refinancing your home? Give us a call at 6507631924.

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Norcal Capital Group, Inc

1369 El Camino Real
Millbrae, CA 94030