Choosing a Refinancing Loan

The huge number of refinance options available to borrowers is truly breathtaking. We can help you choose the loan program that will fit your financial situation the best. Call us at (415) 456-7802 to begin the process. In order to review your choices, you need to consider your goals for your refinance.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the ideal option for you. Maybe you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage, even as interest rates rise. This is particularly a wise option if you aren't planning a move within the next five years or so. However, if you do see yourself selling your home before too long, an ARM mortgage with a low initial rate might be the best way to bring down your monthly payment.

Refinancing to Cash Out

Are you planning to cash out some of your equity in your refinance? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. Then you will need to look for a loan for more than the remaining balance on your existing mortgage loan.Then you will want to qualify for a loan program for a higher number than the remaining balance on your current mortgage. However, if your loan interest rate is currently high and you have 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 cash out a portion of your home equity to consolidate other debt? Good plan! If you have the home equity to make it work, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars monthly.

Building up Equity More Quickly

Do you need to build up home equity quicker, and pay off your mortgage more quickly? You should consider refinancing to a shorterterm loan, often a 15-year mortgage. You will be paying less interest and increasing your home equity more quickly, although your payments will generally be bigger than you have been paying. But, you may be able to make the change without much increase in your monthly payment if your long term mortgage loan was closed a while back, and the balance remaining is low enough. You could even pay less! To help you understand your options and the multiple benefits of refinancing, please call us at (415) 456-7802. We are here for you.

Curious about refinancing your home? Call us: (415) 456-7802.

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