Selecting a Refinancing Option

There are a huge number of refinancing options available to borrowers. We can guide you to choose the refinance loan program that can fit your needs the best. Contact us at 925-895-4155 to get started. What do you hope to achieve with refinancing? Considering in mind the information below will help you begin your decision process.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal choice for you. Maybe you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the loan, even when interest rates rise. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a wise loan option. On the other hand, if you can see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate might be the best way to reduce your monthly payments.

Cashing Out

Is "cashing out" your primary reason for refinancing? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. So you'll need to look for a loan for more than the remaining balance of your present mortgage loan.With this goal, you will need However, if your mortgage rate is currently high and you've had it for quite a few years, you could be able to accomplish your goals without making your monthly payments bigger.

Consolidating Your Debt

Do you have other debt, perhaps with higher interest, that you need to consolidate? If you hold any debt with higher interest (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have enough equity.

Building up Equity More Quickly

Do you want to build up home equity more quickly, and have your mortgage paid off faster? In that case, you'll want to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. The payments will probably be higher than with the long-term mortgage loan, but the pay-off is: that you will pay quite a bit less interest and will build up equity more quickly. But, you may be able to make the change without a higher monthly mortgage payment if your long term loan was closed a while back, and the balance remaining is somewhat low. You may even make it lower! To help you understand your options and the multiple benefits in refinancing, please call us at 925-895-4155. We are here for you.

Curious about refinancing? Give us a call: 925-895-4155.