Which Refinancing Loan Program is Best for You?
There are not as many refinance loan programs as there are applicants, but at times it feels like it! Call us at 650 428 0234 and we can help you qualify for the best refinance loan for your situation. There are some general things to bear in mind while you review your options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a great loan option. However, if you can see yourself moving within several years, an adjustable rate mortgage with a small initial rate might be the ideal way to lower your monthly payment.
Getting Out some Cash
Are you wanting to cash out some of your home equity with your refinance? It could be you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. So you'll want to get a loan higher than the remaining balance of your present mortgage.Then you want to need to qualify for a loan program for a higher amount than the balance remaining on your existing mortgage. You might not increase your mortgage payemnt, however, if you've had your current mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Perhaps you'd like to pull out a portion of the home equity (cash out) to put toward other debt. If you have a fair amount of equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) might help save you a chunk of money every month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your home equity faster? If this is your plan, your refinance loan can switch you to a loan program with a short, such as a 15 year loan. You will be paying less interest and growing your equity faster, even though your monthly payments will likely be bigger than you have been paying. On the other hand, if your existing longer term mortgage has a small balance remaining, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you understand your options and the numerous benefits in refinancing, please call us at 650 428 0234. We will help you reach your goals!