Choosing a Refinancing Option
There aren't as many loan options as there are borrowers, but it seems like it sometimes! We can guide you to select the refinance loan program that can fit your needs the best. Call us at (650) 689-5684 to get started. There are several things to have in mind while you review the choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan may be a wise choice for you. Perhaps you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low interest rate for the term of your mortgage. If you expect to live in your home for about five more years, a fixed rate loan may be a particulary good choice for you. However, if you can see yourself selling your home before too long, an ARM mortgage with a small initial rate may be the best way to reduce your monthly payment.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Maybe you want to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. In this case, you will need to get a loan for more than the balance remaining of your existing mortgage.So you will need If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Perhaps you hope to cash out some equity in your home (cash out) to use toward other debt. If you have enough home equity, paying toward 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 cash each month.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while beefing up your equity faster? Consider refinancing with a shorterterm loan, like a 15-year mortgage. The payments will likely be more than they were with a longer term mortgage, but in exchange, that you will pay quite a bit less interest and can build up equity quicker. On the other hand, if your existing longer term loan has a small remaining balance, and was closed a number of years ago, you may be able to make the switch without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at (650) 689-5684. We will help you reach your goals!
Curious about refinancing? Call us at (650) 689-5684.