Which Refinancing Option is Best for You?
There are an enormous number of refinancing programs available to borrowers. Contact us at (408) 626-1879 and we will work with you to qualify you for the best refinance loan for your financial needs. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even if interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you plan to stay in your home for at least five more years, a loan with a fixed rate may be an especially good choice for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get lower payments.
Are you hoping to cash out some of your home equity in your refinance? It could be you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. So you want to get a loan above the remaining balance on your existing mortgage loan.With this goal, you want to find a loan for a higher number than the balance remaining on your existing mortgage loan. If you've had your current mortgage loan for quite a while and/or have a mortgage loan with high interest, you may be able to do this without making your mortgage payment bigger.
Consolidating Your Debt
Perhaps you want to pull out a portion of the equity (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars in your monthly budget.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while building up your home equity faster? In that case, you'll want to look into refinancing to a short term mortgage - for example, a fifteen-year loan. You will be paying less interest and growing your home equity more quickly, although your payments will likely be more than you have been paying. However, if you've had your existing 30 year loan for a number of years and the remaining balance is rather low, you may be do this without raising your monthly payment — you may even be able to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at (408) 626-1879. We will help you reach your goals!
Want to know more about refinancing? Call us at (408) 626-1879.