Refinancing: Which Loan Program is for You?

Although it may seem like it at times, there are not as many refinance loan options as there are borrowers! Contact us at (415) 456-7802 and we will help you qualify for the best loan program for your situation. There are some general questions to ask yourself as you consider your options.

Reducing Your Monthly Payments

Are getting reduced payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be the best choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low interest rate for the term of your loan. If you are expecting to live in your home for at least five more years, a fixed rate mortgage may be an especially good choice for you. However, an ARM with a initial low payment could be a smarter way to lower your monthly payments if you expect to move within the near future.

Getting Out some Cash

Are you hoping to cash out some of your equity with your refinance? It could be you want to make home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you'll want to get a loan for more than the remaining balance of your current mortgage.With this goal, you'll want to find a loan program for a higher number than the remaining balance on your existing mortgage loan. You may not increase your monthly payemnt, however, if you've had your existing loan for a long time, and/or your interest rate is high.

Debt Consolidation

Do you want to cash out some home equity to consolidate other debt? Great idea! If you have the home equity to make it work, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars a month.

Paying it off Sooner

Are you dreaming of paying off your loan faster, while building up your home equity faster? You should consider refinancing to a short-term loan, like a 15-year mortgage loan. The monthly payments will likely be more than with your longer term loan, but the pay-off is: you will pay considerably less interest and will build up equity quicker. But, you may be able to make the change without a higher monthly mortgage payment if your longer term mortgage was closed a while back, and the remaining balance is low. You could even pay less! To help you figure out your options and the numerous benefits of refinancing, please call us at (415) 456-7802. We are here for you.

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

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