Refinancing: Which Option is for You?

There are not as many refinance loan options as there are borrowers, but at times it seems like it! Contact us at (408) 626-1879 and we'll help you qualify for the perfect refinance program for your financial situation. surveying your choices, you can determine your goals for your refinance.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan might be a good option for you. Perhaps you now hold a fixed-rate mortgage with a higher rate, or perhaps you hold 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 life of your mortgage loan, even when interest rates rise. If you are expecting to stay in your home for at least five more years, a loan with a fixed rate may be an especially good option for you. However, an ARM with a initial low payment may be a wiser way to lower your monthly payments if you plan on moving within the near future.

Refinancing to Cash Out

Is "cashing out" your primary reason for refinancing? Maybe you need to pay for home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you'll want to qualify for a loan above the balance remaining on your current mortgage loan.With this goal, you will You'll be looking for a loan for a higher amount than the remaining balance of your present mortgage loan in that case. You might not have an increase in your monthly payemnt, though, if you have had your current loan for a while, and/or your interest rate is high.

Consolidating Your Debt

Perhaps you'd like to pull out some home equity (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars a month.

Paying it off Faster

Are you hoping to fatten up your home equity faster, and pay your mortgage off sooner? If this is your wish, the refinance can change you to a mortgage program with a short, for example: a 15 year loan. Your payments will probably be higher than they were with a long-term loan, but the pay-off is: that you will pay substantially less interest and will build up equity quicker. However, if you have held your current 30 year mortgage for a number of years and the loan balance is relatively low, you may be do this without raising your monthly payment — you may even be able to save! To help you determine your options and the multiple benefits in refinancing, please contact us at (408) 626-1879. We would love to help you reach your goals!

Want to know more about refinancing your home? Call us: (408) 626-1879.

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