Refinancing: Which Option is for You?
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There aren't as many loan program choices as there are borrowers, but at times it feels like it! Contact us at 415-999-2439 and we can match you with the refinance program that is best for your needs. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even when interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. This is particularly a good choice if you aren't expecting a move within the next five years or so. However, if you can see yourself moving within several years, an ARM mortgage with a small initial rate might be the ideal way to bring down your monthly payments. By refinancing your current mortgage, your total finance charges may be more over the life of the loan.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you are planning some home improvements. In this case, you will want to get a loan above the remaining balance of your present mortgage.So you'll want You might not have an increase in your mortgage payment, though, if you've had your existing loan for a long time, and/or your interest rate is high.
Perhaps you want to pull out some of the equity in your home (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars monthly.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your equity faster? If this is your plan, your refinance mortgage can move you to a mortgage program with a short, such as a 15 year loan. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will usually be more than they were. However, if you've held your existing 30 year loan for a number of years and the loan balance is relatively low, you might be able to do this without increasing your monthly payment — you might even be able to save! To help you determine your options and the many benefits in refinancing, please call us at
415-999-2439. We are here for you.
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