Which Refinancing Program is Best for You?
Although it seems like it sometimes, there are not as many refinance choices as there are borrowers! We can help you choose the refinance loan program that will fit your needs the best. Contact us at (707) 252-2700 to begin the process. There are some general questions to ask yourself as you consider your choices.
Lowering Your Payments
Are getting better monthly payments and a better rate your main refinance goals? Then a low, fixed rate loan may be the right option 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 will stay at a certain low rate for the term of the mortgage, even if interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good option. However, an ARM with a initial low payment may be a wiser way to lower your payments if you plan on moving within the near future.
Getting Out some Cash
Is "cashing out" your primary reason for refinancing? Maybe you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you want to get a loan for more than the balance remaining on your present mortgage.Then you'll want You might not increase your monthly payemnt, though, if you've had your current loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you'd like to cash out a portion of the home equity (cash out) to use toward other debt. If you have the home equity to make it work, taking care of other high interest debt (like credit cards, home equity loans, or car loans) means you can possible save several hundred dollars monthly.
Getting a Shorter Term Loan
Are you hoping to fatten your home equity faster, and get your mortgage paid off more quickly? Then, you want to look into refinancing to a short term mortgage - such as a fifteen-year loan. Your monthly payments will probably be higher than with the long-term loan, but the pay-off is: that you will pay substantially less interest and can build up equity more quickly. However, if you've held your current thirty-year mortgage for a number of years and the remaining balance is somewhat low, you may be able to do this without increasing your monthly mortgage payment — it's even possible to save! To help you figure out your options and the many benefits of refinancing, please call us at (707) 252-2700. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call: (707) 252-2700.