Choosing a Refinancing Loan
There are a huge number of refinancing programs available to borrowers. Contact us at (707) 252-2700 and we will help you qualify for the best loan program for your financial situation. In the interest of looking at your options, you'll need to consider what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you set that low rate for the term of your mortgage. If you expect to live in your home for about five more years, a loan with a fixed rate may be a particulary good choice for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Your house needs new carpet; your son has been accepted to college and needs tuition; or you have a special family vacation planned. Then you want to look for a loan above the balance remaining of your existing mortgage.In this case, you will You will need to find a loan for a higher amount than the remaining balance of your present mortgage in this case. However, if your loan interest rate is currently high and you have held it for quite a few years, you could be able to reach your goals without a rise in your mortgage payment.
Do you want to pull out some home equity to consolidate additional debt? Excellent idea! If you have the home equity to make it work, paying off other high interest debt (for example: home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Paying it off Sooner
Are you wanting to fatten up your home equity faster, and pay your mortgage off sooner? You should consider refinancing with a short-term loan, like a 15-year mortgage. Although your monthly payment amount will probably be more, you can save on interest; so your equity will build up faster. But, you could be able to make the change without a bigger monthly payment if your long term mortgage loan was closed a while ago, and the balance remaining is small. You may even pay less! To help you determine your options and the many benefits of refinancing, please contact 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.