Refinancing: Which Option is for You?

The huge number of refinance options available to borrowers can be overwhelming. We can help you locate the refinance program that can fit your situation the best. Contact us at (415) 456-7802 to begin the process. What are your reasons for refinancing? Keeping in mind the following will help you narrow your choices.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage, even when interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a good option. On the other hand, if you can see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate might be the best way to bring down your monthly payments.

Getting Out some Cash

Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? Your house needs improvements; your daughter has gone to college and needs tuition money; or you are taking your family on a cruise. In this case, you'll need to qualify for a loan above the balance remaining of your present mortgage.With this goal, you want to find a loan for a bigger number than the balance remaining on your existing mortgage loan. However, if your loan interest rate is high now and you've had it for a long time, you could be able to reach your goals without making your mortgage payments increase.

Consolidating Your Debt

Perhaps you'd like to cash out a portion of the home equity (cash out) to use toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your budget each month.

Paying it off Faster

Are you dreaming of paying off your loan more quickly, while building up your equity faster? Consider refinancing with a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and growing your home equity faster, even though your monthly payments will likely be higher than they were. But, you might be able to switch without a bigger monthly payment if your longer term mortgage was closed a while back, and the balance remaining is low. You could even make it lower! To help you determine your options and the multiple benefits in refinancing, please call us at (415) 456-7802. We are here for you.

Want to know more about refinancing? Give us a call: (415) 456-7802.

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