Which Refinancing Loan Program is Best for You?
There aren't as many loan programs as there are applicants, but it feels like it at times! Call us at (415) 456-7802 and we will match you with the refinance program that fits you best. In the interest of looking at your choices, you need to think about what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good choice could be a low fixed-rate loan. Perhaps you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even as interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a wise option. However, an ARM with a low intitial payment could be a smarter way to lower your mortgage payments if you plan on moving in the near future.
Getting Out some Cash
Are you hoping to cash out some of your equity in your refinance? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or take a cruise. Then you want to find a loan above the remaining balance on your present mortgage loan.Then you'll need However, if your loan interest rate is high now and you've had it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Maybe you hope to cash out a portion of the equity in your home (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars monthly.
Paying it off Sooner
Do you plan to build up home equity quicker, and pay off your mortgage faster? Then, you want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. Even though your monthly payments will likely be increased, you can be paying less interest; so your equity will rise up faster. But, you might be able to make the change without a bigger monthly payment if your long term loan was closed a while ago, and the balance remaining is low enough. You may even make it lower! To help you determine your options and the numerous benefits in refinancing, please contact us at (415) 456-7802. We can help you reach your goals!
Curious about refinancing your home? Give us a call: (415) 456-7802.