Refinancing: Which Loan Program is for You?

The huge number of refinance options available can be overwhelming. Contact us at (510) 683-9850 and we will help you qualify for the right refinance loan for your financial needs. There are several things to have in mind while you review the choices.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage, even if interest rates rise. This can be especially a wise idea if you don't plan to sell your home within the next 5 years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.

Refinancing to Cash Out

Is "cashing out" your main reason for refinancing? Maybe you want to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. In this case, you'll want to find a loan higher than the balance remaining on your present mortgage.Then you want You may not increase your monthly payemnt, however, if you have had your current mortgage loan for a number of years, and/or your interest rate is high.

Debt Consolidation

Maybe you want to pull out some of the home equity (cash out) to use toward other debt. If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars per month.

Building up Equity Faster

Are you dreaming of paying off your loan more quickly, while building up your home equity faster? If this is your wish, the refinance mortgage can switch you to a loan program with a short, for example: a 15 year loan. Even though your mortgage payment amount will probably be more, you can save on interest; so your equity will build up faster. But, you may be able to make the change without a higher monthly payment if your longer term mortgage was closed a while back, and the remaining balance is low enough. You could even make it lower! To help you determine your options and the many benefits in refinancing, please call us at (510) 683-9850. We are here for you.

Curious about refinancing? Give us a call: (510) 683-9850.

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