Refinancing: Which Option is for You?

The number of refinance options available to borrowers can be overwhelming. We can help you locate the loan program that will fit your needs the best. Call us at 6507631924 to begin the process. In the interest of looking at your choices, you can think about your goals for your refinance.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right 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 when interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a good loan option. On the other hand, if you can see yourself selling your home before too long, an ARM mortgage with a low initial rate may be the ideal way to lower your monthly payments.

Getting Out some Cash

Is your refinance goal primarily to pull out some of your equity for an infusion of cash? Your home needs updating; your son has been accepted to University and needs tuition; or you are planning a special vacation. In this case, you will need to find a loan higher than the balance remaining of your present mortgage.With this goal, you want to qualify for a loan program for a bigger amount than the balance remaining on your present mortgage loan. If you've had your existing mortgage for quite a while and/or have a mortgage with a high interest rate, you may be able to do this without increasing your mortgage payment.

Debt Consolidation

Do you want to pull out a portion of your equity to consolidate additional debt? Excellent idea! If you have a fair amount of equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could help save you a lot of money each month.

Switching to a Shorter Term Loan

Are you hoping to fatten up your equity faster, and pay your mortgage loan off sooner? If this is your plan, the refinance can move you to a mortgage loan program with a short, for example: a 15 year loan. You will be paying less interest and growing your home equity faster, even though your payments will usually be bigger than you have been paying. However, if you've held your existing thirty-year loan for a long time and the remaining balance is somewhat low, you may be do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits of refinancing, please contact us at 6507631924. We are here for you.

Curious about refinancing your home? Give us a call at 6507631924.

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Norcal Capital Group, Inc

1369 El Camino Real
Millbrae, CA 94030