Choosing a Refinancing Option
Even though it may seem like it sometimes, there are not as many refinance loan choices as there are borrowers! We can help you locate the refinance program that will fit your needs the best. Contact us at (415) 456-7802 to get started. There are several things to bear in mind while you review the choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best option could be a low fixed-rate loan. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even if interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for at least five more years, a fixed-rate loan may be a particulary good choice for you. However, an ARM with a low intitial payment may be a better way to reduce your monthly payments if you expect to move in the near future.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Maybe you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. Then you will want to find a loan for more than the balance remaining on your current mortgage.In this case, you You will be looking for a loan for more than the current balance with your present mortgage in that case. However, if your loan interest rate is high now and you've held it for a long time, you could be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate other debt? Good idea! If you have a fair amount of home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a chunk of money each month.
Switching to a Shorter Term Loan
Are you hoping to fatten up your home equity faster, and pay off your mortgage more quickly? Consider refinancing with a short-term loan, like a 15-year mortgage loan. Although your mortgage payment amount will likely be increased, you can be paying less interest; so your home equity will rise up faster. On the other hand, if your current longer term mortgage loan has a low balance remaining, and was closed a while ago, you may be able to make the change without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at (415) 456-7802. We are here to help you reach your goals!
Curious about refinancing? Call us: (415) 456-7802.