Selecting a Refinancing Option
There are an enormous number of refinancing programs available to borrowers. Contact us at (415) 456-7802 and we'll work with you to qualify you for the perfect refinance loan to fit your financial needs. There are several things to keep in mind while you review your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low rate for the life of your mortgage. This kind of loan is especially a good idea if you aren't planning a move within the next 5 years or so. However, an ARM with a low intitial payment could be a wiser way to reduce your payments if you expect to move in the next few years.
Getting Out some Cash
Are you hoping to cash out some of your home equity with your refinance? Your house needs updating; your son has gone to college and needs tuition; or you have a special family vacation planned. With this in mind, you need to qualify for a loan above the remaining balance of your present mortgage loan.In this case, you want to find a loan program for a bigger amount than the remaining balance on your existing mortgage. You may not increase your mortgage payemnt, however, if you've had your current mortgage loan for a long time, and/or your loan interest rate is high.
Do you want to pull out some equity to consolidate other debt? Great plan! If you have some debt with higher interest (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Paying it off Sooner
Are you dreaming of paying your loan off more quickly, while building up your home equity quicker? In that case, you want to look into refinancing to a short term mortgage - for example, a fifteen-year loan. Although your monthly payment amount will probably be increased, you will save on interest; so your equity amount will build up faster. Conversely, if your current longer term loan has a small remaining balance, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you understand your options and the numerous benefits of refinancing, please contact us at (415) 456-7802. We will help you reach your goals!
Want to know more about refinancing? Give us a call at (415) 456-7802.