Which Refinancing Option is Best for You?

There aren't as many refinance loan programs as there are borrowers, but it seems like it at times! We can guide you to find the refinance loan program that can fit your financial situation the best. Contact us at (408) 626-1879 to get things started. There are some general things to have in mind as you review the options.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage 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 perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even as interest rates rise. If you aren't planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a great choice. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.

Refinancing to Cash Out

Are you refinancing primarily to "cash out" some home equity? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. So you'll want to get a loan for more than the balance remaining of your present mortgage loan.With this goal, you will You'll be looking for a loan for a bigger amount than the current balance with your present mortgage loan in that case. If you've had your existing mortgage loan for a number of years and/or have a mortgage with a high interest rate, you might\could be able to do this without increasing your monthly payment.

Debt Consolidation

Perhaps you'd like to cash out a portion of the equity (cash out) to put toward other debt. If you own some debt with higher interest (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have enough home equity.

Paying it off Sooner

Do you want to build up equity more quickly, and have your mortgage paid off more quickly? In that case, you want to find out about refinancing to a short term mortgage loan - like a fifteen-year loan. You will be paying less interest and increasing your equity faster, although your mortgage payments will likely be higher than they were. But, you may be able to switch without much increase in your monthly payment if your longer term loan was closed a while ago, and the remaining balance is small. You may even pay less! To help you determine your options and the many benefits of refinancing, please contact us at (408) 626-1879. We are here for you.

Curious about refinancing? Call us at (408) 626-1879.

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