Which Refinancing Option is Best for You?
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than borrowers! Call us at (408) 626-1879 and we can match you with the refinance loan program that is ideal for your needs. What are your goals for your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good choice could be a low fixed-rate loan. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest 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 mortgage, even as interest rates rise. If you expect to live in your home for at least five more years, a fixed rate loan may be an especially good fit for you. However, an ARM with a low intitial payment may be a smarter way to lower your mortgage payments if you expect to move in the near future.
Getting Out some Cash
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Maybe you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you will want to get a loan higher than the remaining balance on your current mortgage.With this goal, you will want If you've had your current mortgage loan for a long time and/or have a mortgage whose interest rate is high, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you want to cash out some of your home equity to consolidate other debt? Good idea! If you have a fair amount of equity, paying off other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may help save you a chunk of money every month.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while beefing up your home equity more quickly? In that case, you want to find out about refinancing to a short term mortgage - like a fifteen-year loan. Even though your monthly payments will usually be more, you will be paying less interest; so your equity will rise up faster. However, if you've held your existing thirty year mortgage loan for a long time and the remaining balance is somewhat low, you may be able to do this without raising your monthly payment — it's even possible to save! To help you understand your options and the many benefits in refinancing, please call us at (408) 626-1879. We are here to help you reach your goals!
Curious about refinancing? Give us a call at (408) 626-1879.