Choosing a Refinancing Program
When you are overwhelmed with all the options, it may seem like there are even more loan programs than applicants! Call us at 650 428 0234 and we will match you with the refinance loan program that fits you best. What are your goals for your refinance loan? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Are getting reduced monthly payments and a better rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the right loan program for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your loan, even if interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a great loan option. However, if you do see yourself moving before too long, an ARM mortgage with a low initial rate could be the ideal way to bring down your monthly payments.
Refinancing to Cash Out
Are you hoping to cash out some of your equity with your refinance? Maybe you want to make home improvements, pay your child's college tuition bill, or go on a dream vacation. In this case, you'll want to qualify for a loan higher than the balance remaining of your existing mortgage.In that case, you'll You will be looking for a loan for more than the balance remaining with your existing home loan in this case. You might not increase your monthly payemnt, however, if you've had your existing mortgage for a while, and/or your interest rate is high.
Do you hold other debt, perhaps with higher interest, that you need to consolidate? If you hold any debt with steep interest (like credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have enough equity.
Building up Equity More Quickly
Are you dreaming of paying off your loan sooner, while beefing up your home equity more quickly? If this is your goal, the refinance can move you to a mortgage program with a short, for example: a 15 year loan. Even though your mortgage payment amount will likely be increased, you can be paying less interest; so your equity will build up faster. But, you could be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage was closed a while back, and the balance remaining is small. You could even pay less! To help you understand your options and the many benefits in refinancing, please call us at 650 428 0234. We would love to help you reach your goals!