Refinancing: Which Program is for You?
When you are overwhelmed with all the options, it may seem like there are even more loan programs than borrowers! Call us at (415) 456-7802 and we'll work with you to qualify you for the perfect refinance program to fit your situation. There are some general things to keep in mind as you review the choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a wise choice for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in that low rate for the term of your mortgage. This kind of loan is particularly a good idea if you aren't expecting a move within the next 5 years or so. However, an ARM with a initial low payment could be a better way to reduce your payments if you expect to move in 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 take a cruise. So you will want to find a loan higher than the remaining balance of your existing mortgage loan.Then you want However, if your mortgage rate is currently high and you have held it for a long time, you could be able to accomplish your goals without making your monthly payments higher.
Perhaps you'd like to cash out a portion of the home equity (cash out) to use toward other debt. If you have enough equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a chunk of cash every month.
Paying it off Sooner
Do you plan to build up equity quicker, and have your mortgage paid off faster? In that case, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Even though your monthly payments will likely be increased, you will save on interest; so your equity amount will build up faster. But, you might be able to make the change without much increase in your monthly mortgage payment if your long term mortgage was closed a while ago, and the remaining balance is low. You may even make it lower! To help you figure out your options and the multiple benefits of refinancing, please call us at (415) 456-7802. We can help you reach your goals!
Want to know more about refinancing your home? Call us at (415) 456-7802.