Selecting a Refinancing Program
Even though it seems like it sometimes, there are not as many loan options as there are applicants! Contact us at (650) 689-5684 and we can match you with the refinance program that is best for your needs. There are some general things to have in mind as you consider the choices.
Reducing Your Monthly Payments
Are achieving reduced mortgage payments and a lower rate your main refinance goals? In that case, your best choice may be a low fixed-rate loan. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the loan, even if interest rates rise. If you are expecting 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. However, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate may be the best way to lower your monthly payments.
Getting Out some Cash
Is "cashing out" your primary reason for your refinance? Perhaps you're going on a much needed vacation; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you will need to get a loan for more than the remaining balance on your current mortgage loan.In that case, you You will need to apply for a loan for more than the remaining balance with your present mortgage in this case. You may not increase your monthly payemnt, however, if you've had your existing mortgage for a while, and/or your loan interest rate is high.
Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you have the equity in your home to make it work, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can possible save several hundred dollars monthly.
Getting a Shorter Term Loan
Are you planning to fatten your equity faster, and pay your mortgage off sooner? If this is your goal, the refinance can change you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your equity more quickly, although your payments will generally be more than they were. But, you might be able to switch without a bigger monthly payment if your long term loan was closed a while ago, and the remaining balance is low enough. You could even pay less! To help you determine your options and the multiple benefits of refinancing, please contact us at (650) 689-5684. We are here for you.
Want to know more about refinancing your home? Give us a call: (650) 689-5684.