Choosing a Refinancing Program
When you are overwhelmed with all the options, it may seem as if there are even more refinance loan programs than applicants! Call us at 650 428 0234 and we can help you qualify for the right refinance loan to fit your financial needs. There are some general things to bear in mind as you consider your options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you are now in a mortgage 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 mortgage with a fixed rate, you lock in that low rate for the life of your loan. A fixed-rate mortgage can be especially a good idea if you don't plan to sell your home within the next 5 years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for your refinance? Your home needs updating; your daughter has gone to college and needs tuition; or you have a special family vacation planned. So you need to qualify for a loan for more than the balance remaining of your present mortgage loan.Then you will You'll be looking for a loan for more than the remaining balance of your existing mortgage in that case. If you've had your current mortgage for quite a while and/or have a mortgage loan with a high interest rate, you may be able to do this without making your monthly payment bigger.
Do you want to pull out some equity to consolidate other debt? Yes you can! If you hold any higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have enough equity.
Paying it off Faster
Are you dreaming of paying off your loan sooner, while building up your home equity faster? If this is your plan, your refinance loan can change 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, although your mortgage payments will generally be bigger than they were. But, you might be able to make the change without a higher monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you figure out your options and the numerous benefits of refinancing, please call us at 650 428 0234. We can help you reach your goals!