Refinancing: Which Loan Program is for You?

Although it seems like it sometimes, there are not as many loan programs as there are borrowers! Contact us at 6507631924 and we will match you with the loan program that is best for your needs. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be particularly a wise option if you don't think you'll be selling your home within the next five years or so. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower monthly payments.

Cashing Out

Are you wanting to cash out some of your equity with your refinance? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. So you'll want to look for a loan higher than the balance remaining on your existing mortgage loan.So you will need If you've had your current mortgage loan for a number of years and/or have a mortgage loan with a high interest rate, you might\could be able to do this without making your monthly payment bigger.

Consolidating Debt

Do you want to pull out a portion of your home equity to consolidate other debt? Good idea! If you have the home equity to make it work, paying off 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 save possibly hundreds of dollars a month.

Paying it off Sooner

Are you dreaming of paying your loan off sooner, while building up your home equity quicker? If this is your hope, 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 increasing your home equity more quickly, although your mortgage payments will usually be bigger than you were paying. But, you might be able to make the change without a higher monthly payment if your longer term loan was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you understand your options and the many benefits in refinancing, please call us at 6507631924. We are here for you.

Curious about refinancing? Call us at 6507631924.

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Norcal Capital Group, Inc

1369 El Camino Real
Millbrae, CA 94030