Which Refinancing Option is Best for You?
The huge number of refinance options available is truly breathtaking. Call us at (510) 683-9850 and we can match you with the refinance loan program that fits you best. In the interest of looking at your options, you can determine what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are getting better monthly payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be the right loan program for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage, even as interest rates rise. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can especially be a good option. However, an ARM with a low intitial payment could be a better way to lower your mortgage payments if you see yourself moving in the near future.
Getting Out some Cash
Is "cashing out" your primary purpose for refinancing? Your home needs improvements; your daughter has been accepted to University and needs tuition money; or you have a special family vacation planned. So you will want to find a loan for more than the remaining balance of your existing mortgage.In that case, you will need You might not increase your mortgage payemnt, though, if you have had your existing loan for a number of years, and/or your interest rate is high.
Do you hold other debt, maybe with high interest, that you need to consolidate? If you have built up some home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a lot of cash each month.
Building up Equity Faster
Do you hope to build up equity more quickly, and have your mortgage paid off faster? If this is your goal, the refinance mortgage can move you to a mortgage loan program with a shorter term, such as a 15 year loan. Your payments will probably be more than they were with your long-term mortgage, but in exchange, that you will pay substantially less interest and will build up equity quicker. But, you might be able to make the change without much increase in your monthly mortgage payment if your long term mortgage was closed a while ago, and the balance remaining is small. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at (510) 683-9850. We will help you reach your goals!
Want to know more about refinancing? Give us a call at (510) 683-9850.
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