Selecting A Refinancing Program

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Even though it may seem like it sometimes, there aren't as many refinance choices as there are applicants! Call us at 925-461-0500 and we'll work with you to qualify you for the right refinance program for your financial situation. There are several questions to ask yourself while you consider your choices.

 

 

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? Then the best option could be a low fixed-rate loan. Perhaps you are now in a loan with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low rate for the life of your mortgage. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a good loan option. However, if you can see yourself moving before too long, an ARM with a small initial rate may be the ideal way to bring down your monthly payments. Refinancing can also cause your finance charges to be higher over the life of the loan.

 

Refinancing to Cash Out

Are you hoping to cash out some of your home equity in your refinance? It could be you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. Then you want to find a loan for more than the remaining balance on your current mortgage.In that case, you'll want to find a loan for a higher number than the balance remaining on your current mortgage loan. You may not have an increase in your mortgage payment, however, if you've had your existing mortgage for a while, and/or your loan interest rate is high.

 

Consolidating Your Debt

Do you hold other debt, maybe with high interest, that you want to consolidate? If you hold some higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.

 

Paying it off Sooner

Are you dreaming of paying off your loan faster, while building up your home equity faster? Consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Although your mortgage payments will probably be increased, you can save on interest; so your equity amount will build up faster. Conversely, if your existing long-term mortgage loan has a low balance remaining, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you determine your options and the multiple benefits in refinancing, please call us at 925-461-0500. We are here for you.