Which Refinancing Program is Best for You?
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There are an enormous number of refinancing options available to borrowers. We can help you locate the refinance program that can fit your financial situation the best. Contact us at (408) 255-3978 to get started. In order to review your options, you'll need to think about your goals for the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a wise choice for you. Maybe you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the interest rate varies. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even if interest rates rise. If you aren't planning on moving in the near future (about 5 years), a fixed-rate mortgage can especially be a good choice. On the other hand, if you can see yourself selling your home before too long, an ARM with a small initial rate could be the best way to lower your monthly payments.
Refinancing to Cash Out
Are you refinancing primarily to pull out some equity for an infusion of cash? Your house needs improvements; your daughter has been accepted to college and needs tuition; or you are taking your family on a cruise. In this case, you'll need to get a loan higher than the balance remaining of your existing mortgage.So you want to qualify for a loan program for a bigger amount than the remaining balance on your existing mortgage. However, if your loan interest rate is high now and you have held it for a long time, you may be able to achieve your goals without a rise in your mortgage payment.
Do you want to pull out a portion of your home equity to consolidate other debt? Good plan! If you have enough equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a lot of cash each month.
Getting a Shorter Term Loan
Do you need to build up equity more quickly, and pay off your mortgage sooner? In that case, you need to look into refinancing to a short term mortgage - like a fifteen-year mortgage program. Even though your monthly payment amount will usually be increased, you will save on interest; so your home equity will rise up faster. However, if you've had your existing 30-year loan for a number of years and the remaining balance is rather low, you could be do this without raising your mortgage payment — it's even possible to save! To help you understand your options and the many benefits of refinancing, please call us at (408) 255-3978. We are here for you.
Curious about refinancing? Give us a call at (408) 255-3978.