Refinancing: Which Option is for You?

There are a huge number of refinancing programs available to borrowers. We can help you find the refinance program that will fit your situation the best. Contact us at (415) 456-7802 to get things started. There are some general things to have in mind as you review your options.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even as interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for about five more years, a fixed-rate loan may be an especially good choice for you. On the other hand, if you do see yourself moving within the next few years, an adjustable rate mortgage with a small initial rate could be the best way to reduce your monthly payments.

Refinancing to Cash Out

Is your refinance goal mainly to pull out some home equity for an infusion of cash? It could be you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. So you will want to apply for a loan above the remaining balance on your current mortgage loan.Then you'll want to find a loan for a higher amount than the remaining balance on your existing mortgage. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.

Consolidating Debt

Maybe you want to pull out some of the home equity (cash out) to use toward other debt. If you have any debt with high interest (such as credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.

Paying it off Faster

Do you want to build up home equity quicker, and pay off your mortgage more quickly? Consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your home equity faster, although your payments will generally be bigger than they were. But, you might be able to make the change without a bigger monthly payment if your long term loan was closed a while back, and the remaining balance is somewhat low. You could even make it lower! To help you figure out your options and the multiple benefits in refinancing, please contact us at (415) 456-7802. We are here for you.

Want to know more about refinancing your home? Give us a call at (415) 456-7802.

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