Choosing a Refinancing Option
There are an enormous number of refinancing programs available to borrowers. Contact us at (408) 626-1879 and we will match you with the refinance program that fits you best. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then the best option could be a low fixed-rate loan. Perhaps you now hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you set that low rate for the life of your loan. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can especially be a great option. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you'll want to get a loan higher than the balance remaining on your current mortgage loan.In that case, you will need If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Perhaps you'd like to pull out some equity in your home (cash out) to put toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you can possible save several hundred dollars in your budget each month.
Paying it off Sooner
Are you dreaming of paying your loan off sooner, while beefing up your equity quicker? Then, you'll need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. You will be paying less interest and increasing your home equity faster, even though your monthly payments will generally be more than they were. Conversely, if your existing long-term mortgage has a low remaining balance, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at (408) 626-1879. We will help you reach your goals!
Want to know more about refinancing? Give us a call: (408) 626-1879.