Refinancing: Which Option is for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance programs than applicants! Call us at (408) 626-1879 and we can match you with the refinance program that fits you best. In order to review your options, you should list what you want to achieve with the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan could be a good option for you. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage with which the rate of interest 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 set that low rate for the term of your mortgage. If you aren't expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a good choice. However, an ARM with a initial low payment may be a better way to lower your mortgage payments if you expect to move within the near future.
Is "cashing out" your primary purpose for refinancing? Perhaps you want to make home improvements, take care of your college kid's tuition, or take a cruise. So you'll want to get a loan for more than the balance remaining of your current mortgage.With this goal, you will want If you've had your existing mortgage for quite a while and/or have a loan with high interest, you might\could be able to do this without making your monthly payment bigger.
Maybe you want to cash out some of the equity in your home (cash out) to use toward other debt. If you hold any debt with high interest (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while building up your home equity quicker? Consider refinancing to a short-term loan, often a 15-year mortgage. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will usually be more than they were. Conversely, if your existing long-term mortgage loan has a low remaining balance, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you determine your options and the numerous benefits of refinancing, please call us at (408) 626-1879. We can help you reach your goals!
Curious about refinancing? Call us at (408) 626-1879.