Choosing a Refinancing Option
Although it may seem like it sometimes, there are not as many loan options as there are borrowers! We can guide you to locate the loan program that will fit your financial situation the best. Contact us at (650) 689-5684 to get started. In the interest of looking at your options, you'll need to think about what you want to achieve with your refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, your best option might be a low fixed-rate loan. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the life of your mortgage. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a great loan option. On the other hand, if you do see yourself selling your home before too long, an ARM with a small initial rate may be the best way to reduce your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Perhaps you want to update your kitchen, pay your child's college tuition bill, or take your dream vacation. So you'll need to find a loan for more than the remaining balance on your current mortgage.Then you You'll be looking for a loan for more than the balance remaining on your existing mortgage in this case. However, if your interest rate is high now and you have held it for quite a few years, you may be able to accomplish your goals without an increase in your mortgage payment.
Do you want to cash out some equity to consolidate additional debt? Yes you can! If you have some higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Building up Equity Faster
Do you hope to build up home equity quicker, and pay off your mortgage sooner? If this is your hope, the refinance can switch you to a loan program with a short, such as a 15 year loan. Although your monthly payments will usually be more, you can be paying less interest; so your equity amount will build up faster. But, you could be able to switch without a bigger monthly mortgage payment if your long term mortgage loan was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you determine your options and the many benefits of refinancing, please contact us at (650) 689-5684. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at (650) 689-5684.