Selecting a Refinancing Loan
There are not as many refinance loan options as there are borrowers, but it feels like it sometimes! Call us at (415) 456-7802 and we'll help you qualify for the perfect refinance loan to fit your financial situation. In order to review your choices, you can list your goals for the refinance.
Making Your Payments Lower
Are achieving better payments and a lower rate your main reasons for refinancing? In that case, applying for a low, fixed-rate loan might be a good choice for you. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage, even if interest rates rise. If you plan to live in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Are you hoping to cash out some of your home equity with your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. So you will want to get a loan higher than the balance remaining on your existing mortgage.With this goal, you want You may not have an increase in your monthly payemnt, though, if you have had your existing mortgage for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out some home equity to consolidate other debt? Great plan! If you have enough home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of money every month.
Paying it off Faster
Do you plan to build up equity quicker, and pay off your mortgage sooner? If this is your goal, the refinance loan can change you to a mortgage program with a short, such as a 15 year loan. Your payments will probably be more than they were with the longer term mortgage, but the pay-off is: you will pay considerably less interest and can build up equity quicker. Conversely, if your current longer term mortgage has a small remaining balance, and was closed a while ago, you may be able to make the switch without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at (415) 456-7802. We are here for you.
Curious about refinancing your home? Call us at (415) 456-7802.