Selecting a Refinancing Program
There are not as many loan program choices as there are applicants, but it feels like it sometimes! Contact us at (650) 689-5684 and we can match you with the refinance loan program that is ideal for you. There are several questions to ask yourself while you consider your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a good choice for you. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even when interest rates rise. If you plan to stay in your home for about five more years, a loan with a fixed rate may be a particulary good choice for you. However, if you do see yourself selling your home in the near future, an ARM with a small initial rate could be the best way to bring down your monthly payment.
Is your refinance goal primarily to "cash out" some home equity? Perhaps you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are planning some home improvements. So you will need to apply for a loan higher than the remaining balance of your existing mortgage loan.Then you will want However, if your loan interest rate is currently high and you've had it for a long time, you may be able to reach your goals without making your mortgage payments higher.
Do you want to pull out a portion of your equity to consolidate other debt? Great plan! If you hold any debt with steep interest (like credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough equity.
Paying it off Faster
Are you wanting to fatten up your home equity faster, and pay off your mortgage loan more quickly? Consider refinancing with a shorterterm loan, like a 15-year mortgage loan. Your mortgage payments will likely be more than with your long-term loan, but the pay-off is: you will pay considerably less interest and can build up equity quicker. Conversely, if your existing long-term loan has a low balance remaining, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you understand your options and the numerous benefits in refinancing, please call us at (650) 689-5684. We are here for you.
Want to know more about refinancing? Call us: (650) 689-5684.