Refinance A Home Mortgage As Part of Your Financial Planning

Refinancing is often used to lower your interest rate. If rates have dropped since you last financed your home, you may want to consider refinancing. Other common reasons to refinance include paying off a balloon payment, converting an adjustable rate loan to a fixed rate loan or to extract cash equity in your home, known as cash out. A few reasons for cashing out include home improvement, education funding and consolidating debt.

Another way to convert equity in your home to cash is a home equity loan. A home equity loan is an alternative to refinancing if your home loan has a very low rate compared to current interest rates or if you have a prepayment penalty on your loan. Getting better loan terms will give you more flexibility.

Reduce Your Interest Rate to Pay Less Interest and Build More Equity

If interest rates have gone down since your last loan or refinance, then it is a good time to refinance. You can maintain the same loan term length or decrease it. If you are in a position and can increase your monthly mortgage payments, the refinance interest rate will be even lower and you can build equity in the home more quickly. If you want to lower your monthly payments to improve monthly cash flow, refinancing with your current loan length or even lengthening it can be done and still achieve better interest rates than your previous mortgage.

Cash Out Equity for Home Improvements or Debt Consolidation

 

When you get your mortgage refinanced, you have the option of getting cash out which you can use for home improvements, eduction funding or whatever else your situation calls for. There is another option, called a home equity line of credit (HELOC), which is different from a cash out refi. Each individual's circumstances are different, so it is best to ask us which of your options is the better choice. If you have several large accounts of credit, instead of continuing to pay multiple credit and loan bills a month, you can consolidate all of that into your mortgage, known as debt consolidation. That way you can increase your monthly cash flow, pay less interest overall, and even improve your credit score. 

Pacific Green Funding is a home mortgage lending company that helps first time buyers and repeat buyers purchase homes. We offer a wide range of loan options with low interest rates on loans including fixed rate, adjustable (ARM), FHA, VA, home equity line of credit (HELOC), refinance, debt consolidation, and more. Our sole purpose is to find the best mortgage solution for each client as a part of each of their individual financial plans. We are solution specialists and have been voted best mortgage broker year after year.. We serve clients looking to purchase homes in Fremont, Milpitas, Union City, Newark, San Jose, Santa Clara, San Ramon, Dublin, Pleasanton, Hayward, San Leandro, San Lorenzo, Oakland, San Francisco and all throughout the Bay Area and California. Our ability to get loans funded quickly and overcome delays enables our clients to buy the homes they want with the reliable service they need. With top ratings we always strive to go above and beyond to ensure the best possible home loan solution.