Choosing a Refinancing Program

There are not as many refinance loan programs as there are borrowers, but it seems like it at times! Call us at (415) 456-7802 and we'll work with you to qualify you for the right refinance loan program to fit your needs. There are several things to keep in mind while you review the options.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage, even when interest rates rise. If you expect to live in your home for at least five more years, a loan with a fixed rate may be an especially good fit for you. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.

Cashing Out

Are you refinancing mainly to "cash out" some home equity? Your house needs updating; your son has been accepted to college and needs tuition money; or you have a special family vacation planned. In this case, you need to apply for a loan above the balance remaining of your present mortgage.So you'll want to qualify for a loan for a higher number than the balance remaining on your present mortgage loan. If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.

Consolidating Your Debt

Perhaps you hope to cash out some home equity (cash out) to put toward other debt. If you have any higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the equity built up to make it work.

Building up Equity More Quickly

Are you hoping to fatten up your equity faster, and pay off your mortgage loan more quickly? In that case, you'll want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. Although your mortgage payments will usually be more, you can be paying less interest; so your equity amount will build up faster. But, you might be able to switch without much increase in your monthly payment if your longer term loan was closed a while back, and the balance remaining is small. You could even pay less! To help you understand your options and the many benefits in refinancing, please call us at (415) 456-7802. We will help you reach your goals!

Curious about refinancing? Call us at (415) 456-7802.

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