Which Refinancing Option is Best for You?
The huge number of refinance options available to borrowers can be overwhelming. Call us at (707) 252-2700 and we will work with you to qualify you for the right refinance loan program for your financial situation. In the interest of looking at your options, you can list what you want to achieve with the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a wise option for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. 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 could be a wiser way to lower your monthly payments if you expect to move within the near future.
Are you wanting to cash out some of your equity with your refinance? Your house needs new carpet; your son has gone to University and needs tuition money; or you have a special family vacation planned. With this in mind, you need to get a loan for more than the balance remaining on your existing mortgage loan.With this goal, you'll You will be looking for a loan for a higher amount than the current balance of your present mortgage loan in that case. You might not have an increase in your monthly payemnt, however, if you've had your current loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Maybe you want to cash 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 mortgage (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Switching to a Shorter Term Loan
Do you need to build up home equity more quickly, and pay off your mortgage sooner? If this is your plan, the refinance mortgage can change you to a mortgage program with a shorter term, like a 15 year loan. Your payments will likely be more than they were with the long-term loan, but in exchange, you will pay considerably less interest and can build up equity more quickly. On the other hand, if your current longer term mortgage has a small remaining balance, and was closed a while ago, you could be able to make the move without paying more each month. To help you understand your options and the numerous benefits in refinancing, please call us at (707) 252-2700. We are here for you.
Want to know more about refinancing? Give us a call at (707) 252-2700.