Which Refinancing Option is Right for You?

Although it seems like it at times, there are not as many refinance loan choices as there are borrowers! Call us at (510) 683-9850 and we will match you with the refinance loan program that best fits you. There are some general things to have in mind as you consider your choices.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? Then your best choice could be a low fixed-rate loan. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even when interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good choice. However, an ARM with a initial low payment may be a smarter way to reduce your monthly payments if you expect to move in the near future.

Cashing Out

Is "cashing out" your primary reason for your refinance? Your house needs improvements; your son has been accepted to college and needs tuition money; or you are planning a special vacation. So you will need to find a loan for more than the balance remaining on your existing mortgage loan.So you will want If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.

Consolidating Debt

Do you want to cash out some of your equity to consolidate additional debt? Good plan! If you hold any higher interest debts (like credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of home equity.

Paying it off Faster

Are you dreaming of paying your loan off faster, while beefing up your home equity more quickly? You should consider refinancing with a short-term loan, often a 15-year mortgage loan. You will be paying less interest and growing your home equity faster, even though your mortgage payments will likely be bigger than you have been paying. On the other hand, if your current long-term loan has a low balance remaining, and was closed a while ago, you could be able to make the change without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please call us at (510) 683-9850. We are here for you.

Curious about refinancing your home? Call us: (510) 683-9850.

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