Selecting a Refinancing Loan
When you are overwhelmed with all the choices, it may seem as if there are even more loan programs than applicants! Call us at (707) 252-2700 and we will match you with the refinance loan program that best fits you. In the interest of looking at your options, you need to consider what you want to achieve with the refinance.
Lowering Your Payments
Are getting reduced monthly payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be the right loan program for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even when interest rates rise. This is especially a wise choice if you aren't expecting a move within the next five years or so. But if you do expect 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 purpose for your refinance? Maybe you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. So you'll need to get a loan for more than the balance remaining on your existing mortgage.Then you will You'll want to get a loan for a higher amount than the balance remaining with your present home loan in this case. However, if your loan interest rate is currently high and you've held it for quite a few years, you may be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Perhaps you hope to pull out some of the home equity (cash out) to put toward other debt. If you have a fair amount of home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of cash each month.
Paying it off Sooner
Do you hope to build up equity quicker, and have your mortgage paid off sooner? If this is your goal, the refinance can change you to a mortgage loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and growing your equity faster, although your payments will usually be higher than you have been paying. But, you might be able to switch without much increase in your monthly mortgage payment if your long term loan was closed a while back, and the balance remaining is somewhat low. You could even make it lower! To help you determine your options and the numerous benefits in refinancing, please contact us at (707) 252-2700. We are here for you.
Curious about refinancing your home? Give us a call: (707) 252-2700.