Choosing a Refinancing Program
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than borrowers! We can guide you to select the loan program that can fit your financial situation the best. Contact us at (650) 689-5684 to begin the process. In order to review your options, you need to consider what you want to achieve with your refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan may be a good choice for you. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in that low interest rate for the term of your loan. If you are expecting to stay in your home for about five more years, a loan with a fixed rate may be a particulary good fit for you. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Are you planning to cash out some of your home equity with your refinance? Perhaps you need to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. In this case, you will want to get a loan above the remaining balance on your existing mortgage.Then you'll want to need to get a loan for a higher amount than the remaining balance on your existing mortgage loan. You might not increase your monthly payemnt, though, if you've had your existing mortgage for a while, and/or your loan interest rate is high.
Do you want to pull out some of your home equity to consolidate other debt? Yes you can! If you have a fair amount of equity, taking care of other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) may help save you a lot of cash every month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while beefing up your equity quicker? You should consider refinancing with a short-term loan, like a 15-year mortgage. Although your mortgage payments will probably be increased, you can be paying less interest; so your home equity will rise up faster. Conversely, if your existing long-term mortgage has a low balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please contact us at (650) 689-5684. We are here for you.
Curious about refinancing? Call us: (650) 689-5684.