Choosing a Refinancing Option

There are not as many loan program choices as there are borrowers, but at times it seems like it! Contact us at (408) 626-1879 and we can match you with the refinance program that fits you best. What do you hope to achieve with refinancing? Keeping in mind the information below will help you narrow your choices.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best loan program for you. 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 when rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low rate for the life of your mortgage. If you plan to live in your home for about five more years, a fixed-rate loan may be a particulary good option for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.

Cashing Out

Is "cashing out" your primary reason for your refinance? It could be you need to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. Then you need to find a loan above the balance remaining of your existing mortgage loan.So you'll You'll be looking for a loan for a bigger amount than the remaining balance on your existing mortgage loan in this case. If you've had your current mortgage for quite a while and/or have a mortgage with a high interest rate, you may be able to do this without making your mortgage payment higher.

Consolidating Your Debt

Do you have other debt, perhaps with high interest, that you need to consolidate? If you have any debt with steep interest (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have enough home equity.

Switching to a Shorter Term Loan

Do you plan to build up equity quicker, and pay off your mortgage more quickly? Then, you want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year loan. Even though your mortgage payment amount will likely be increased, you will save on interest; so your home equity will rise up faster. However, if you have had your current 30 year mortgage for a long time and the remaining balance is rather low, you could be able to do this without increasing your monthly mortgage payment — you might even be able to save! To help you understand your options and the multiple benefits of refinancing, please call us at (408) 626-1879. We will help you reach your goals!

Want to know more about refinancing your home? Call us at (408) 626-1879.

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