Which Refinancing Loan Program is Right for You?
When you are overwhelmed with so many choices, it may seem like there are even more loan programs than applicants! Contact us at (408) 626-1879 and we will match you with the refinance program that best fits you. There are some general things to bear in mind while you consider your options.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage loan, even if interest rates rise. This kind of loan is especially a wise idea if you aren't planning a move within the next 5 years or so. However, an ARM with a initial low payment may be a wiser way to reduce your mortgage payments if you expect to move within the near future.
Are you planning to cash out some of your home equity in your refinance? Maybe you need to make home improvements, take care of your college kid's tuition, or take your family on a dream vacation. In this case, you need to find a loan above the remaining balance of your existing mortgage loan.So you You'll need to apply for a loan for a bigger amount than the current balance with your current mortgage in this case. However, if your loan interest rate is currently high and you've held it for a long time, you could be able to achieve your goals without making your monthly payments higher.
Do you want to cash out some home equity to consolidate additional debt? Yes you can! If you hold any debt with steep interest (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough equity.
Building up Equity Faster
Are you hoping to fatten up your home equity faster, and pay off your mortgage sooner? In that case, you need to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. You will be paying less interest and increasing your equity faster, although your mortgage payments will usually be more than you were paying. Conversely, if your current longer term loan has a small balance remaining, and was closed a while ago, you may even be able to make the change without paying more each month. To help you determine your options and the numerous 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 at (408) 626-1879.