Choosing a Refinancing Option

There are a huge number of refinancing programs available to borrowers. Call us at 6507631924 and we will work with you to qualify you for the right loan program to fit your needs. There are some general things to keep in mind while you consider the options.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, a good choice could be a low fixed-rate loan. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — with which the rate of interest can vary. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even as interest rates rise. If you are expecting to live in your home for about five more years, a fixed rate loan may be a particulary good option for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.

Cashing Out

Is "cashing out" your primary purpose for your refinance? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. With this in mind, you will want to find a loan above the balance remaining on your current mortgage loan.With this goal, you You'll be looking for a loan for a higher amount than the balance remaining with your present mortgage in that case. You might not have an increase in your monthly payemnt, though, if you've had your existing mortgage loan for a long time, and/or your loan interest rate is high.

Debt Consolidation

Do you have other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars each month.

Paying it off Faster

Do you hope to build up equity more quickly, and pay off your mortgage faster? Consider refinancing with a short-term loan, often a 15-year mortgage loan. Even though your monthly payment amount will likely be increased, you can be paying less interest; so your equity will build up faster. However, if you have had your current thirty-year mortgage for a long time and the remaining balance is relatively low, you could be able to do this without increasing your monthly payment — you could even be able to save! To help you figure out your options and the many benefits of refinancing, please contact us at 6507631924. We are here to help you reach your goals!

Curious about refinancing? Call us: 6507631924.

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Norcal Capital Group, Inc

1369 El Camino Real
Millbrae, CA 94030