Selecting a Refinancing Program
Although it may seem like it sometimes, there aren't as many refinance options as there are applicants! Call us at (650) 689-5684 and we can help you qualify for the right refinance loan for your financial needs. surveying your options, you can consider your goals for the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right loan program for you. Maybe you are presently in a loan with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage, even as interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise option. However, an ARM with a initial low payment may be a wiser way to lower your mortgage payments if you plan on moving in the next few years.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? It could be you're planning a special vacation; you need to pay college tuition for your child; or you are planning some home improvements. So you will want to find a loan higher than the remaining balance of your existing mortgage loan.So you'll You will want to qualify for a loan for more than the balance remaining with your current mortgage in that case. You may not increase your mortgage payemnt, however, if you have had your current mortgage loan for a number of years, and/or your loan interest rate is high.
Perhaps you hope to pull out some equity (cash out) to use toward other debt. If you have some higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Getting a Shorter Term Loan
Do you want to build up equity more quickly, and pay off your mortgage sooner? If this is your goal, your refinance loan can move you to a mortgage loan program with a short, for example: a 15 year loan. Although your monthly payments will likely be more, you can be paying less interest; so your home equity will build up faster. But, you could be able to switch without much increase in your monthly mortgage payment if your long term mortgage was closed a while ago, and the remaining balance is low. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please call us at (650) 689-5684. We are here for you.
Curious about refinancing your home? Call us at (650) 689-5684.