Choosing a Refinancing Loan
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than borrowers! Call us at (925) 627-1400 and we can match you with the loan program that best fits you. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even as interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. This kind of loan can be particularly a wise idea if you don't think you'll be selling your home within the next 5 years or so. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Perhaps you need to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. So you need to qualify for a loan for more than the balance remaining of your current mortgage loan.So you'll need If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Maybe you'd like to pull out some of the equity (cash out) to put toward other debt. If you hold any debt with high interest (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of equity.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your equity quicker? If this is your plan, your refinance loan can change you to a mortgage loan program with a shorter term, for example: a 15 year loan. Even though your monthly payments will likely be increased, you can be paying less interest; so your equity will build up faster. Conversely, if your existing long-term mortgage has a low balance remaining, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you determine your options and the numerous benefits in refinancing, please call us at (925) 627-1400. We are here to help you reach your goals!
Curious about refinancing? Give us a call at (925) 627-1400.