Refinancing: Which Option is for You?

There are not as many loan options as there are applicants, but at times it feels like it! We can help you locate the loan program that will fit your situation the best. Call us at (415) 406-2330 to get things started. In the interest of looking at your options, you should list your goals for your refinance.

Reducing Your Monthly Payments

Are getting better monthly payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate varies. Even as interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise loan option. On the other hand, if you do see yourself moving before too long, an adjustable rate mortgage with a low initial rate may be the best way to lower your monthly payment.

Cashing Out

Are you hoping to cash out some of your home equity in your refinance? It could be you need to make home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you'll need to find a loan for more than the balance remaining on your present mortgage.In that case, you want However, if your interest rate is high now and you've held it for a long time, you may be able to accomplish your goals without making your mortgage payments bigger.

Consolidating Debt

Do you want to pull out some home equity to consolidate other debt? Excellent idea! If you have some higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.

Paying it off Faster

Do you plan to build up equity quicker, and have your mortgage paid off more quickly? If this is your goal, the refinance loan can move you to a mortgage program with a shorter term, such as a 15 year loan. Although your mortgage payments will probably be more, you can save on interest; so your home equity will build up faster. But, you could be able to switch without a higher monthly payment if your long term loan was closed a while ago, and the remaining balance is low enough. You may even pay less! To help you figure out your options and the numerous benefits of refinancing, please contact us at (415) 406-2330. We are here for you.

Want to know more about refinancing? Call us at (415) 406-2330.