Considering Refinancing?

Wondering which Loan Program is for You?

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When you are overwhelmed with so many options, it may seem like there are even more loan programs than applicants! Give me a call at 408-402-5936 and I can match you with the refinance loan program that best fits you.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, a good choice might be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be particularly a good option if you aren't expecting a move within the next five years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower mortgage payments. As a result of refinancing, your total finance charges may be higher over the life of the loan.

Cashing Out

Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Your house needs new carpet; your son has been accepted to college and needs tuition; or you have a special family vacation planned. So you'll need to get a loan for more than the remaining balance of your current mortgage.So you'll You will be looking for a loan for a higher amount than the balance remaining of your present mortgage in that case. However, if your mortgage rate is currently high and you have held it for quite a few years, you may be able to achieve your goals without making your mortgage payments higher.

Consolidating Your Debt

Do you want to pull out a portion of your equity to consolidate additional debt? Good idea! If you hold any higher interest debts (such as credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have enough equity.

Building up Equity More Quickly

Are you hoping to fatten your equity faster, and pay off your mortgage more quickly? In that case, you'll want to find out about refinancing to a short-term mortgage - for example, a fifteen-year mortgage loan. The payments will probably be more than with a long-term mortgage, but in exchange, that you will pay considerably less interest and can build up equity more quickly. However, if you've held your current thirty-year loan for a number of years and the loan balance is rather low, you could be able to do this without raising your monthly payment — you could even be able to save! To help you determine your options and the many benefits of refinancing, please contact us at 408-402-5936. We are here for you.