Which Refinancing Program is Best for You?
There are not as many refinance loan programs as there are applicants, but it feels like it at times! We can guide you to find the loan program that will fit your needs the best. Call us at (408) 626-1879 to get things started. There are some general questions to ask yourself as you look at the options.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, the best option could be a low fixed-rate loan. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you aren't planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a wise loan option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity in your refinance? It could be you're going on a much needed vacation; you need to pay college tuition for your child; or you plan to renovate your home. With this in mind, you'll want to get a loan higher than the remaining balance on your current mortgage.With this goal, you'll You will want to get a loan for a bigger amount than the remaining balance of your existing home loan in that case. You might not increase your mortgage payemnt, however, if you have had your current mortgage for a long time, and/or your interest rate is high.
Consolidating Your Debt
Do you want to pull out some of your home equity to consolidate other debt? Great plan! If you have any debt with steep interest (like 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 the right amount of home equity.
Getting a Shorter Term Loan
Do you plan to build up equity more quickly, and pay off your mortgage faster? Then, you want to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. You will be paying less interest and growing your home equity faster, although your payments will generally be more than they were. But, you might be able to make the change without a bigger monthly payment if your long term mortgage was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the many benefits of refinancing, please contact us at (408) 626-1879. We are here for you.
Curious about refinancing your home? Call us: (408) 626-1879.