Which Refinancing Loan Program is Best for You?

Even though it seems like it sometimes, there are not as many refinance loan programs as there are borrowers! Contact us at (650) 689-5684 and we can match you with the refinance program that best fits you. What are your goals for refinancing? Keeping in mind the following will help you begin your decision process.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best loan program for you. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage, even as interest rates rise. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can especially be a good option. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced mortgage payments.

Refinancing to Cash Out

Are you hoping to cash out some of your home equity with your refinance? Maybe you're going on a much needed vacation; you have to pay college tuition for your child; or you are planning some home improvements. Then you need to find a loan for more than the remaining balance of your current mortgage loan.Then you'll You'll be looking for a loan for more than the current balance on your existing mortgage in this case. If you've had your existing mortgage for a long time and/or have a mortgage with a high interest rate, you may be able to do this without making your mortgage payment bigger.

Consolidating Debt

Do you have other debt, maybe with high interest, that you need to consolidate? If you have any debt with high 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 the home equity built up to make it work.

Switching to a Shorter Term Loan

Are you dreaming of paying your loan off more quickly, while beefing up your home equity faster? Consider refinancing with a shorterterm loan, often a 15-year mortgage loan. You will be paying less interest and growing your home equity faster, although your mortgage payments will generally be more than you were paying. On the other hand, if your existing longer term mortgage loan has a small balance remaining, and was closed a number of years ago, you may be able to make the switch without paying more each month. To help you understand your options and the multiple benefits of refinancing, please call us at (650) 689-5684. We can help you reach your goals!

Want to know more about refinancing? Give us a call: (650) 689-5684.

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