Refinancing: Which Option is for You?
Even though it may seem like it at times, there aren't as many refinance loan options as there are applicants! Contact us at (415) 456-7802 and we will match you with the loan program that fits you best. In order to review your choices, you'll need to think about your goals for the refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a wise option for you. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low interest rate for the term of your loan. If you expect to live in your home for about five more years, a fixed rate loan may be an especially good choice for you. However, if you do see yourself selling your home within the next few years, an ARM with a low initial rate could be the ideal way to bring down your monthly payments.
Are you wanting to cash out some of your equity with your refinance? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a an Alaskan cruise. In this case, you want to apply for a loan above the balance remaining on your existing mortgage loan.With this goal, you will want to need to get a loan program for a bigger amount than the balance remaining on your existing mortgage loan. If you've had your existing mortgage for quite a while and/or have a mortgage loan with a high interest rate, you may be able to do this without making your mortgage payment higher.
Perhaps you'd like to cash out some home equity (cash out) to put toward other debt. If you have enough home equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may help save you a lot of cash every month.
Building up Equity More Quickly
Are you wanting to fatten your home equity faster, and pay your mortgage off more quickly? In that case, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year loan. Although your mortgage payment amount will probably be more, you will be paying less interest; so your equity will build up faster. But, you might be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while back, and the balance remaining is small. You may even make it lower! To help you determine your options and the many benefits in refinancing, please contact us at (415) 456-7802. We will help you reach your goals!
Want to know more about refinancing your home? Call us: (415) 456-7802.