Refinancing: Which Program is for You?

When you are overwhelmed with all the options, it may seem as if there are even more loan programs than borrowers! We can help you select the refinance program that will fit your financial situation the best. Contact us at (707) 252-2700 to get things started. What are your goals for refinancing? Considering in mind the information below will help you begin your decision process.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you are currently in a loan with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a good loan option. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.

Cashing Out

Are you refinancing primarily to pull out some home equity for an infusion of cash? Your home needs updating; your daughter has been accepted to University and needs tuition money; or you are taking your family on a cruise. In this case, you want to look for a loan higher than the remaining balance on your present mortgage.So you will need However, if your loan interest rate is currently high and you've had it for quite a few years, you may be able to accomplish your goals without a rise in your mortgage payment.

Consolidating Your Debt

Do you hold other debt, maybe with a high interest rate, that you need to consolidate? If you have built up some equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash each month.

Getting a Shorter Term Loan

Are you dreaming of paying off your loan sooner, while beefing up your home equity quicker? Consider refinancing to a shorterterm loan, often a 15-year mortgage. The payments will probably be more than with your longer term mortgage, but in exchange, that you will pay substantially less interest and will build up equity more quickly. On the other hand, if your existing longer term loan 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 determine your options and the many benefits of refinancing, please contact us at (707) 252-2700. We are here for you.

Want to know more about refinancing your home? Give us a call at (707) 252-2700.

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