Which Refinancing Loan Program is Right for You?
There are not as many loan options as there are applicants, but it seems like it at times! Call us at (650) 689-5684 and we'll help you qualify for the right refinance loan program to fit your financial needs. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are getting reduced mortgage payments and an improved rate your main reasons for refinancing? Then a good choice might be a low fixed-rate loan. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate varies. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you expect to live in your home for at least five more years, a loan with a fixed rate may be an especially good option for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Are you wanting to cash out some of your equity with your refinance? Maybe you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. So you want to find a loan above the balance remaining of your current mortgage.In that case, you'll need You might not have an increase in your monthly payemnt, however, if you have had your existing loan for a number of years, and/or your loan interest rate is high.
Maybe you'd like to cash out a portion of the equity (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars in your monthly budget.
Getting a Shorter Term Loan
Are you hoping to fatten your home equity faster, and pay your mortgage loan off sooner? If this is your plan, the refinance loan can change you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your equity more quickly, even though your payments will usually be more than you have been paying. But, you could be able to switch without a higher monthly payment if your long term loan was closed a while back, and the remaining balance is small. You could even pay less! To help you determine your options and the numerous benefits of refinancing, please call us at (650) 689-5684. We are here to help you reach your goals!
Want to know more about refinancing? Call us: (650) 689-5684.