Which Refinancing Loan Program is Best for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance programs than applicants! Contact us at (408) 626-1879 and we can match you with the refinance loan program that is best for you. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a good choice could be a low fixed-rate loan. Perhaps you are presently 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 interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise loan option. However, if you do see yourself moving within the next few years, an ARM mortgage with a low initial rate could be the best way to reduce your monthly payments.
Are you planning to cash out some of your home equity with your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you want to qualify for a loan above the remaining balance on your existing mortgage.So you You'll be looking for a loan for more than the remaining balance on your current mortgage in this case. If you've had your existing mortgage loan for quite a while and/or have a mortgage with high interest, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Perhaps you want to cash out a portion of the home equity (cash out) to use toward other debt. If you own some higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the home equity built up to make it work.
Switching to a Shorter Term Loan
Do you need to build up equity quicker, and pay off your mortgage more quickly? In that case, you want to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and growing your home equity faster, although your monthly payments will likely be higher than they were. Conversely, if your existing longer term mortgage has a small balance remaining, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please contact us at (408) 626-1879. We would love to help you reach your goals!
Curious about refinancing your home? Call us: (408) 626-1879.