Refinancing: Which Loan Program is for You?
The huge number of refinance options available to borrowers is truly breathtaking. Call us at (408) 626-1879 and we'll help you qualify for the perfect refinance loan program to fit your financial needs. In the interest of looking at your options, you need to think about your goals for your refinance.
Making Your Payments Lower
Are getting lower monthly payments and a lower rate your main reasons for refinancing? In that case, getting a low, fixed-rate loan could be a good choice for you. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of your loan, even when interest rates rise. If you aren't planning a move in the near future (about 5 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 monthly payments if you expect to move in the near future.
Getting Out some Cash
Are you hoping to cash out some of your equity in your refinance? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are updating your kitchen. Then you want to find a loan above the balance remaining on your present mortgage loan.In that case, you need However, if your mortgage rate is high now and you've had it for a long time, you could be able to reach your goals without making your mortgage payments rise.
Consolidating Your Debt
Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have a fair amount of home equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash every month.
Getting a Shorter Term Loan
Are you hoping to fatten your home equity faster, and pay off your mortgage sooner? You should consider refinancing to a short-term loan, like a 15-year mortgage. Your mortgage payments will probably be higher than with your longer term mortgage, but the pay-off is: you will pay substantially less interest and can build up equity more quickly. On the other hand, if your current longer term mortgage loan has a low balance remaining, and was closed a number of years ago, you may be able to make the change without paying more each month. To help you figure out your options and the many benefits in refinancing, please contact us at (408) 626-1879. We would love to help you reach your goals!
Curious about refinancing your home? Give us a call: (408) 626-1879.