Which Refinancing Option is Best for You?
Even though it seems like it at times, there are not as many refinance choices as there are borrowers! Call us at (650) 689-5684 and we will match you with the loan program that best fits you. In order to review your choices, you need to determine your goals for your refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if 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 planning to live in your home for at least five more years, a fixed rate mortgage may be an especially good fit for you. However, if you do see yourself moving within several years, an ARM with a low initial rate might be the ideal way to reduce your monthly payments.
Are you hoping to cash out some of your equity in your refinance? Maybe you need to update your kitchen, pay your child's college tuition bill, or take your dream vacation. Then you'll want to get a loan above the balance remaining on your current mortgage loan.In that case, you will You will be looking for a loan for more than the balance remaining on your existing mortgage in that case. You might not have an increase in your mortgage payemnt, though, if you have had your current mortgage loan for a number of years, and/or your interest rate is high.
Do you hold other debt, maybe with high interest, that you want to consolidate? If you have any debt with steep interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough home equity.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while building up your equity quicker? You should consider refinancing to a short-term loan, such as a 15-year mortgage loan. Even though your monthly payments will usually be more, you will be paying less interest; so your home equity will rise up faster. But, you may be able to make the change without a higher monthly payment if your long term loan was closed a while back, and the remaining balance is small. You may even pay less! To help you figure out your options and the many benefits of refinancing, please call us at (650) 689-5684. We are here for you.
Curious about refinancing? Give us a call: (650) 689-5684.