Choosing a Refinancing Option

	Shopping for a mortgage loan? We'd be thrilled to talk about your mortgage needs! Give us a call at (831) 459-6073. Ready to get started? Apply Now.

There are a huge number of refinancing options available to borrowers. Contact us at (831) 459-6073 and we will match you with the loan program that fits you best. There are several questions to ask yourself while you consider your options.

Reducing Your Monthly Payments

Is your refinance primarily to lower your rate and monthly payments? Then your best option 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 — where the rate of interest can vary. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your loan, even as interest rates rise. A fixed-rate mortgage is especially a wise option if you don't think you'll be moving within the next 5 years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.

Refinancing to Cash Out

Is "cashing out" your main reason for refinancing? Your house needs updating; your son has been accepted to University and needs tuition; or you are planning a special vacation. In this case, you need to get a loan higher than the balance remaining on your current mortgage loan.Then you will want to find a loan for a higher amount than the remaining balance on your current mortgage loan. You may not have an increase in your monthly payemnt, however, if you've had your existing loan for a long time, and/or your interest rate is high.

Consolidating Debt

Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars monthly.

Paying it off Faster

Are you dreaming of paying off your loan sooner, while beefing up your equity faster? If this is your plan, your refinance can switch you to a mortgage loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your home equity more quickly, even though your payments will likely be bigger than they were. But, you may be able to make the change without a bigger monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is low. You could even make it lower! To help you determine your options and the multiple benefits in refinancing, please contact us at (831) 459-6073. We can help you reach your goals!

Curious about refinancing? Call us at (831) 459-6073.