Refinancing: Which Program is for You?
There are not as many loan options as there are borrowers, but sometimes it feels like it! Contact us at (415) 456-7802 and we can match you with the refinance program that fits you best. There are some general things to have in mind while you consider the options.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then your best choice could be a low fixed-rate loan. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the loan, even as interest rates rise. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a wise choice. However, an ARM with a initial low payment may be a better way to reduce your monthly payments if you expect to move in the near future.
Is "cashing out" your primary purpose for your refinance? Your house needs renovating; your daughter has gone to University and needs tuition money; or you have a special family vacation planned. So you'll need to get a loan above the balance remaining of your existing mortgage.So you need If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.
Consolidating Your Debt
Do you want to cash out some of your home equity to consolidate additional debt? Excellent idea! If you have the equity in your home to make it work, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your equity faster? Then, you need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and increasing your equity faster, even though your monthly payments will usually be bigger than you have been paying. But, you may be able to switch without a higher monthly mortgage payment if your longer term loan was closed a while ago, and the balance remaining is small. You may even make it lower! To help you understand your options and the multiple benefits of refinancing, please call us at (415) 456-7802. We are here for you.
Want to know more about refinancing your home? Give us a call: (415) 456-7802.