Selecting a Refinancing Program
There are a huge number of refinancing options available to borrowers. Contact us at 650 428 0234 and we can match you with the refinance program that fits you best. There are several things to keep in mind while you consider the choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the best option for you. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the life of your loan. If you are planning to stay in your home for about five more years, a loan with a fixed rate may be an especially good option for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Getting Out some Cash
Are you planning to cash out some of your equity in your refinance? It could be you want to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. Then you want to find a loan for more than the balance remaining of your present mortgage.Then you'll want However, if your loan interest rate is currently high and you've held it for a long time, you could be able to reach your goals without making your mortgage payments bigger.
Perhaps you want to pull out some of the equity (cash out) to use toward other debt. If you have enough home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a chunk of cash each month.
Getting a Shorter Term Loan
Are you hoping to fatten your equity faster, and pay off your mortgage loan more quickly? In that case, you'll need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. You will be paying less interest and growing your equity faster, even though your payments will generally be bigger than they were. But, you may be able to make the change without a bigger monthly mortgage payment if your longer term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even make it lower! To help you understand your options and the multiple benefits of refinancing, please contact us at 650 428 0234. We are here for you.