Refinancing: Which Program is for You?

There are an enormous number of refinancing programs available to borrowers. Contact us at (650) 689-5684 and we'll help you qualify for the best refinance program to fit your situation. There are some general questions to ask yourself as you consider the choices.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice might be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a good option. However, an ARM with a low intitial payment could be a better way to reduce your payments if you expect to move within the near future.

Refinancing to Cash Out

Are you refinancing mainly to "cash out" some home equity? Your house needs new carpet; your son has been accepted to college and needs tuition money; or you are taking your family on a cruise. Then you will need to find a loan higher than the remaining balance on your existing mortgage.With this goal, you You'll be looking for a loan for more than the remaining balance on your current mortgage loan in that case. If you've had your current mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.

Debt Consolidation

Maybe you'd like to cash out some home equity (cash out) to put toward other debt. If you have enough home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.

Paying it off Faster

Do you need to build up home equity more quickly, and have your mortgage paid off faster? In that case, you want to look into refinancing to a short term mortgage loan - like a fifteen-year loan. Your mortgage payments will probably be more than they were with your long-term loan, but in exchange, that you will pay substantially less interest and will build up equity quicker. But, you might be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage was closed a while back, and the remaining balance is low enough. You may even pay less! To help you determine your options and the multiple benefits of refinancing, please contact us at (650) 689-5684. We will help you reach your goals!

Want to know more about refinancing your home? Call us at (650) 689-5684.

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