Selecting a Refinancing Program
There are not as many refinance loan programs as there are borrowers, but sometimes it seems like it! We can guide you to choose the loan program that can fit your needs the best. Call us at (707) 252-2700 to get started. There are some general things to bear in mind as you review the choices.
Lowering Your Payments
Are getting lower monthly payments and an improved rate your main refinance goals? If so, a good option could be a low fixed-rate loan. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the loan, even when interest rates rise. This kind of loan can be particularly a good idea if you aren't planning a move within the next 5 years or so. However, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate might be the best way to bring down your monthly payments.
Are you refinancing mainly to "cash out" some home equity? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you want to find a loan higher than the balance remaining on your existing mortgage loan.Then you will want to need to qualify for a loan program for a bigger amount than the remaining balance on your present mortgage. However, if your interest rate is currently high and you've had it for quite a few years, you could be able to accomplish your goals without making your mortgage payments higher.
Do you hold other debt, perhaps with higher interest, that you'd like to consolidate? If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars in your monthly budget.
Building up Equity More Quickly
Do you hope to build up equity more quickly, and have your mortgage paid off more quickly? If this is your goal, your refinance mortgage can switch you to a mortgage program with a short, such as a 15 year loan. You will be paying less interest and increasing your equity more quickly, although your monthly payments will generally be more than you have been paying. Conversely, if your current longer term mortgage has a small remaining balance, and was closed a while ago, you could be able to make the change without paying more each month. To help you figure out your options and the many benefits in refinancing, please call us at (707) 252-2700. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call: (707) 252-2700.