Which Refinancing Program is Best for You?
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Even though it may seem like it at times, there are not as many refinance options as there are applicants! Call us at 408.399.0103 and we can help you qualify for the right refinance loan program for your financial situation. There are several things to have in mind as you consider your options.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right option for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even as interest rates rise. If you plan to stay in your home for about five more years, a fixed rate loan may be an especially good choice for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Getting Out some Cash
Is "cashing out" your primary purpose for your refinance? Your home needs renovating; your son has been accepted to college and needs tuition; or you are taking your family on a cruise. Then you want to qualify for a loan higher than the remaining balance on your existing mortgage.In that case, you will want to find a loan program for a higher amount than the balance remaining on your existing mortgage. If you've had your current mortgage loan for quite a while and/or have a loan whose interest rate is high, you might\could be able to do this without making your mortgage payment higher.
Perhaps you'd like to pull out a portion of the equity (cash out) to use toward other debt. If you have the equity in your home for it, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars a month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while beefing up your home equity more quickly? If this is your goal, your refinance loan can change you to a mortgage loan program with a short, such as a 15 year loan. Even though your mortgage payments will usually be increased, you can save on interest; so your equity will rise up faster. Conversely, if your existing long-term mortgage has a low remaining balance, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you determine your options and the multiple benefits in refinancing, please call us at 408.399.0103. We are here for you.