Which Refinancing Option is Right for You?
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than applicants! Call us at (408) 626-1879 and we can help you qualify for the right refinance loan program to fit your situation. What are your goals for your refinance loan? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Are getting reduced payments and an improved rate your main refinance goals? If so, the best option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set that low rate for the life of your mortgage. This is especially a good option if you don't expect to move within the next five years or so. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Refinancing to Cash Out
Are you hoping to cash out some of your home equity in your refinance? Perhaps you want to make home improvements, take care of your college kid's tuition, or go on a dream vacation. So you will want to find a loan higher than the balance remaining of your present mortgage loan.So you will need If you've had your current mortgage for a long time and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Do you hold other debt, perhaps with a higher interest rate, that you want to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you can possible save several hundred dollars each month.
Building up Equity Faster
Do you want to build up equity more quickly, and pay off your mortgage more quickly? Then, you need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Even though your monthly payments will likely be more, you can be paying less interest; so your home equity will build up faster. But, you may be able to switch without a bigger monthly mortgage payment if your long term loan was closed a while back, and the remaining balance is somewhat low. You may even make it lower! To help you determine your options and the numerous benefits in refinancing, please contact us at (408) 626-1879. We will help you reach your goals!
Curious about refinancing? Call us: (408) 626-1879.