Choosing a Refinancing Loan

There are an enormous number of refinancing programs available to borrowers. We can help you locate the refinance program that can fit your situation the best. Call us at (408) 292-5000 to begin the process. What are your reasons for your refinance loan? Keeping in mind the information below will help you begin your decision process.

Lowering Your Payments

Are achieving lower monthly payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even as interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This can be especially a wise option if you aren't expecting a move within the next 5 years or so. However, if you do see yourself moving within several years, an ARM with a small initial rate may be the best way to reduce your monthly payments.

Cashing Out

Are you refinancing primarily to "cash out" some home equity? It could be you need to make home improvements, pay your child's college tuition bill, or go on a dream vacation. So you'll need to get a loan for more than the balance remaining of your present mortgage loan.With this goal, you will You will want to find a loan for a bigger amount than the current balance on your existing home loan in that case. However, if your interest rate is high now and you've had it for quite a few years, you could be able to accomplish your goals without making your mortgage payments rise.

Debt Consolidation

Perhaps you'd like to pull out some of the home equity (cash out) to put toward other debt. If you have a fair amount of equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a chunk of cash every month.

Building up Equity Faster

Are you hoping to fatten up your equity faster, and pay your mortgage loan off more quickly? In that case, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and growing your equity more quickly, although your monthly payments will usually be bigger than they were. But, you could be able to switch without a bigger monthly payment if your long term mortgage loan was closed a while back, and the remaining balance is small. You could even pay less! To help you determine your options and the numerous benefits in refinancing, please contact us at (408) 292-5000. We will help you reach your goals!