Selecting a Refinancing Option
Even though it may seem like it at times, there aren't as many loan options as there are applicants! Contact us at (408) 626-1879 and we'll work with you to qualify you for the right refinance program for your situation. surveying your choices, you need to list what you want to achieve with your refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a good option might be a low fixed-rate loan. Maybe you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Even as interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a great option. However, an ARM with a low intitial payment may be a wiser way to lower your payments if you expect to move in the near future.
Are you hoping to cash out some of your equity in your refinance? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. So you want to find a loan above the balance remaining of your existing mortgage.Then you'll want to find a loan for a higher amount than the remaining balance on your present mortgage. If you've had your current mortgage for quite a while and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Maybe you'd like to pull out some equity in your home (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Switching to a Shorter Term Loan
Do you plan to build up home equity quicker, and pay off your mortgage sooner? If this is your goal, your refinance can switch you to a mortgage loan program with a short, such as a 15 year loan. Even though your monthly payments will usually be more, you will save on interest; so your equity amount will build up faster. However, if you have had your existing 30-year mortgage loan for a long time and the loan balance is somewhat low, you may be able to do this without increasing your mortgage payment — you may even be able to save! To help you understand your options and the numerous benefits of refinancing, please contact us at (408) 626-1879. We are here for you.
Curious about refinancing? Call us: (408) 626-1879.