Selecting a Refinancing Program
Although it seems like it at times, there aren't as many refinance loan choices as there are borrowers! Contact us at (415) 456-7802 and we can match you with the loan program that is best for you. There are some general things to keep in mind as you look at your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan may be a good option for you. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate varies. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the loan, even as interest rates rise. If you are planning to stay in your home for at least five more years, a loan with a fixed rate may be an especially good option for you. On the other hand, if you can see yourself selling your home in the near future, an ARM with a low initial rate could be the best way to lower your monthly payments.
Are you refinancing mainly to "cash out" some home equity? Maybe you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are planning some home improvements. Then you need to qualify for a loan for more than the balance remaining of your current mortgage loan.Then you You will be looking for a loan for a higher amount than the current balance of your existing mortgage in that case. You might not have an increase in your mortgage payemnt, though, if you have had your current mortgage loan for a number of years, and/or your loan interest rate is high.
Do you have other debt, perhaps with higher interest, that you need to consolidate? If you have built up some home equity, paying toward other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash every month.
Building up Equity Faster
Do you plan to build up equity quicker, and pay off your mortgage faster? If this is your plan, the refinance can switch you to a mortgage loan program with a shorter term, like a 15 year loan. Your monthly payments will likely be more than with the long-term mortgage, but the pay-off is: you will pay considerably less interest and can build up equity quicker. Conversely, if your existing long-term loan has a low remaining balance, and was closed a number of years ago, you may even be able to make the switch without paying more each month. To help you understand your options and the multiple benefits in refinancing, please contact us at (415) 456-7802. We are here for you.
Curious about refinancing your home? Give us a call: (415) 456-7802.