Choosing a Refinancing Option
When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than applicants! Contact us at (408) 626-1879 and we will help you qualify for the right refinance loan to fit your financial situation. There are several things to have in mind while you consider your choices.
Making Your Payments Lower
Are achieving lower mortgage payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage loan, even as interest rates rise. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a great choice. However, an ARM with a initial low payment may be a wiser way to lower your monthly payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or take your family on a dream vacation. Then you want to look for a loan higher than the balance remaining on your existing mortgage.Then you'll want to need to find a loan for a higher amount than the balance remaining on your existing mortgage. However, if your mortgage rate is currently high and you have held it for a long time, you could be able to achieve your goals without making your mortgage payments bigger.
Do you want to pull out some of your home equity to consolidate other debt? Yes you can! If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your monthly budget.
Building up Equity Faster
Are you dreaming of paying your loan off sooner, while building up your equity quicker? If this is your goal, your refinance mortgage can move you to a mortgage loan program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your equity faster, even though your monthly payments will generally be higher than they were. But, you may be able to switch without a higher monthly mortgage payment if your longer term mortgage was closed a while back, and the balance remaining is low. You may even make it lower! To help you determine your options and the many benefits in refinancing, please contact us at (408) 626-1879. We will help you reach your goals!
Want to know more about refinancing your home? Call us: (408) 626-1879.