Which Refinancing Option is Best for You?

There are a huge number of refinancing programs available to borrowers. We can guide you to choose the loan program that will fit your situation the best. Contact us at (415) 456-7802 to begin the process. There are some general questions to ask yourself while you review your choices.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan might be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even when rates get higher later, unlike with your ARM, when you close a fixed rate mortgage, you set the low interest rate for the term of your loan. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a good loan option. However, an ARM with a low intitial payment may be a smarter way to reduce your payments if you expect to move in the next few years.

Refinancing to Cash Out

Are you refinancing primarily to pull out some of your home equity for an infusion of cash? Your house needs new carpet; your son has gone to University and needs tuition money; or you are taking your family on a cruise. In this case, you will want to get a loan for more than the remaining balance of your existing mortgage loan.In this case, you want to qualify for a loan for a bigger amount than the remaining balance on your current mortgage loan. However, if your interest rate is high now and you have held it for quite a few years, you may be able to accomplish your goals without making your mortgage payments increase.

Consolidating Debt

Perhaps you'd like to cash out some of the equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars per month.

Paying it off Sooner

Are you hoping to fatten your equity faster, and pay your mortgage loan off more quickly? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. The payments will likely be higher than they were with a long-term mortgage, but the pay-off is: that you will pay substantially less interest and can build up equity more quickly. But, you might be able to make the change without a bigger monthly mortgage payment if your long term loan was closed a while back, and the remaining balance is somewhat low. You could even make it lower! To help you understand your options and the many benefits of refinancing, please call us at (415) 456-7802. We will help you reach your goals!

Curious about refinancing? Give us a call: (415) 456-7802.

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