Refinancing: Which Option is for You?
The huge number of refinance options available to borrowers is truly breathtaking. Contact us at (415) 456-7802 and we can match you with the refinance loan program that best fits you. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even as interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. This kind of loan is particularly a good choice if you don't expect to move within the next five years or so. On the other hand, if you can see yourself moving in the near future, an adjustable rate mortgage with a small initial rate may be the ideal way to bring down your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? Your home needs improvements; your daughter has gone to University and needs tuition money; or you are taking your family on a cruise. So you want to get a loan higher than the remaining balance of your existing mortgage.Then you need If you've had your existing mortgage for a number of years and/or have a mortgage loan whose interest rate is high, you might\could be able to do this without increasing your mortgage payment.
Do you hold other debt, perhaps with higher interest, that you want to consolidate? If you own some higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the right amount of home equity.
Building up Equity More Quickly
Are you hoping to fatten up your home equity faster, and pay your mortgage loan off sooner? In that case, you need to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. Although your monthly payments will probably be increased, you can save on interest; so your home equity will build up faster. But, you might be able to switch without a higher monthly payment if your longer term loan was closed a while ago, and the remaining balance is small. You could even make it lower! To help you figure out your options and the many benefits in refinancing, please call us at (415) 456-7802. We are here for you.
Curious about refinancing your home? Give us a call at (415) 456-7802.