Selecting a Refinancing Option
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There are not as many refinance loan programs as there are applicants, but it seems like it sometimes! Call us at (831) 459-6073 and we can match you with the refinance loan program that fits you best. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a wise choice for you. Maybe you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. This kind of loan can be especially a good choice if you aren't planning a move within the next 5 years or so. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower monthly payments. Due to refinancing, your total finance charges may be higher over the life of the loan.
Getting Out Some Cash
Is "cashing out" your primary reason for refinancing? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. In this case, you will need to find a loan higher than the balance remaining on your present mortgage.Then you will want If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Do you hold other debt, maybe with higher interest, that you need to consolidate? If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars each month.
Switching to a Shorter Term Loan
Do you hope to build up home equity more quickly, and pay off your mortgage more quickly? Then, you'll need to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. The payments will likely be more than with the long-term loan, but the pay-off is: that you will pay quite a bit less interest and can build up equity quicker. But, you might be able to make the change without a bigger monthly mortgage payment if your longer term mortgage was closed a while back, and the remaining balance is small. You could even make it lower! To help you determine your options and the multiple benefits of refinancing, please call us at
(831) 459-6073. We are here to help you reach your goals!
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