Refinancing: Which Loan Program is for You?
There aren't as many refinance loan options as there are applicants, but it feels like it at times! Contact us at (650) 689-5684 and we will help you qualify for the right refinance loan to fit your needs. What are your goals for refinancing? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even if interest rates rise. A fixed-rate mortgage can be especially a wise choice if you don't expect to move within the next 5 years or so. However, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate may be the ideal way to bring down your monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your equity with your refinance? It could be you want to make home improvements, take care of your college kid's tuition, or go on a special family vacation. So you need to find a loan for more than the remaining balance on your current mortgage.In this case, you'll You will be looking for a loan for more than the remaining balance on your existing home loan in that case. You might not have an increase in your mortgage payemnt, however, if you have had your current loan for a long time, and/or your interest rate is high.
Do you want to pull out some equity to consolidate additional debt? Yes you can! If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars a month.
Getting a Shorter Term Loan
Do you want to build up equity quicker, and have your mortgage paid off more quickly? If this is your goal, the refinance mortgage can move you to a mortgage program with a short, for example: a 15 year loan. Although your monthly payments will usually be more, you will save on interest; so your home equity will rise up faster. But, you may be able to switch without a higher monthly payment if your long term mortgage 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 of refinancing, please contact us at (650) 689-5684. We are here to help you reach your goals!
Curious about refinancing? Call us: (650) 689-5684.