Refinancing: Which Option is for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance programs than applicants! Contact us at (707) 252-2700 and we'll help you qualify for the best refinance loan to fit your needs. In order to review your options, you can determine what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low rate for the life of your mortgage. If you aren't planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a great loan option. However, an ARM with a low intitial payment could be a smarter way to reduce your payments if you see yourself moving in the next few years.
Are you refinancing primarily to "cash out" some home equity? Perhaps you're going on a much needed vacation; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you want to apply for a loan for more than the balance remaining on your present mortgage loan.In this case, you want to qualify for a loan program for a higher number than the remaining balance on your existing mortgage loan. You might not have an increase in 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
Do you hold other debt, maybe with higher interest, that you want to consolidate? If you have enough equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a lot of money every month.
Paying it off Sooner
Are you dreaming of paying off your loan more quickly, while beefing up your home equity faster? In that case, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and growing your home equity faster, even though your mortgage payments will usually be bigger than they were. But, you could be able to switch without a higher monthly mortgage payment if your long term loan was closed a while back, and the remaining balance is low enough. You may even pay less! To help you figure out your options and the multiple benefits in refinancing, please contact us at (707) 252-2700. We can help you reach your goals!
Curious about refinancing your home? Give us a call: (707) 252-2700.