Which Refinancing Loan Program is Right for You?
The number of refinance options available can be overwhelming. Contact us at (408) 626-1879 and we will match you with the refinance loan program that is ideal for your needs. There are some general things to have in mind while you consider the choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan may be a good choice for you. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your mortgage, even as interest rates rise. If you are planning to stay in your home for at least five more years, a fixed rate loan may be an especially good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. With this in mind, you want to get a loan above the remaining balance on your present mortgage loan.With this goal, you will need If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.
Do you want to pull out some of your equity to consolidate other debt? Good plan! If you have the home equity for it, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars in your monthly budget.
Paying it off Sooner
Are you dreaming of paying your loan off more quickly, while building up your equity quicker? If this is your goal, the refinance loan can move you to a loan program with a short, like a 15 year loan. Your mortgage payments will probably be more than with the longer term loan, but in exchange, you will pay considerably less interest and can build up equity more quickly. But, you could be able to switch without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the remaining balance is low enough. You may even make it lower! To help you understand your options and the many benefits of refinancing, please contact us at (408) 626-1879. We are here for you.
Want to know more about refinancing your home? Give us a call at (408) 626-1879.