Selecting a Refinancing Program
When you are overwhelmed with all the options, it may seem as if there are even more refinance programs than applicants! Contact us at (650) 689-5684 and we will match you with the loan program that fits you best. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are getting better mortgage payments and an improved rate your main reasons for refinancing? If so, the best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low rate for the term of your loan. A fixed-rate mortgage can be especially a good choice if you don't think you'll be selling your home within the next five years or so. However, an ARM with a initial low payment could be a better way to lower your payments if you plan on moving within the near future.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? Your home needs improvements; your son has been accepted to University and needs tuition money; or you are planning a special vacation. With this in mind, you will need to get a loan for more than the remaining balance on your present mortgage loan.In this case, you will want to qualify for a loan program for a bigger amount than the remaining balance on your current mortgage loan. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Maybe you hope to pull out a portion of the equity (cash out) to put toward other debt. If you own some debt with steep interest (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have enough home equity.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while beefing up your equity quicker? Then, you need to look into refinancing to a short term mortgage loan - like a fifteen-year loan. You will be paying less interest and increasing your equity faster, although your monthly payments will generally be bigger than they were. But, you might be able to make the change without a higher monthly payment if your long term mortgage was closed a while back, and the balance remaining is low. You may even pay less! To help you determine your options and the many benefits in refinancing, please call us at (650) 689-5684. We will help you reach your goals!
Curious about refinancing? Call us at (650) 689-5684.