Selecting a Refinancing Loan
Although it may seem like it sometimes, there are not as many refinance loan programs as there are applicants! Call us at 650 428 0234 and we'll work with you to qualify you for the right refinance loan for your situation. What are your reasons for your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving better monthly payments and a lower rate your main reasons for refinancing? In that case, applying for a low, fixed-rate loan might be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage loan, even when interest rates rise. A fixed-rate mortgage can be especially a wise idea if you don't plan to move within the next five years or so. However, an ARM with a initial low payment could be a better way to reduce your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? Maybe you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you need to apply for a loan higher than the balance remaining on your present mortgage.With this goal, you want However, if your loan interest rate is high now and you have held it for quite a few years, you could be able to achieve your goals without making your mortgage payments higher.
Do you want to pull out some home equity to consolidate additional debt? Yes you can! If you have built up some equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might help save you a chunk of cash every month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your home equity more quickly? In that case, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Although your monthly payment amount will usually be increased, you will be paying less interest; so your equity will build up faster. However, if you have held your existing 30-year mortgage loan for a number of years and the remaining balance is rather low, you might be do this without raising your mortgage payment — you may even be able to save! To help you determine your options and the multiple benefits of refinancing, please call us at 650 428 0234. We are here for you.