Refinancing: Which Loan Program is for You?
There are not as many loan program choices as there are borrowers, but it seems like it at times! Call us at (415) 406-2330 and we'll help you qualify for the right refinance loan to fit your needs. surveying your options, you need to think about what you want to achieve with your refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan could be a good choice for you. Maybe you are currently in a mortgage with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a wise loan option. On the other hand, if you can see yourself selling your home within the next few years, an ARM mortgage with a low initial rate might be the ideal way to bring down your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? It could be you want to make home improvements, pay your child's college tuition bill, or take a cruise. With this in mind, you want to find a loan higher than the remaining balance of your existing mortgage loan.So you want However, if your mortgage rate is high now and you've held it for quite a few years, you could be able to reach your goals without a rise in your mortgage payment.
Do you hold other debt, maybe with high interest, that you want to consolidate? If you have the equity in your home for it, taking care of other high interest debt (for example: credit cards, home equity loans, or car loans) means you can possible save several hundred dollars in your budget each month.
Paying it off Faster
Are you planning to fatten up your equity faster, and pay your mortgage off more quickly? Consider refinancing to a shorterterm loan, often a 15-year mortgage. You will be paying less interest and increasing your equity faster, even though your payments will usually be higher than they were. However, if you have had your existing 30 year mortgage loan for a number of years and the remaining balance is relatively low, you might be do this without raising your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please call us at (415) 406-2330. We are here for you.
Want to know more about refinancing your home? Call us at (415) 406-2330.