Refinancing: Which Option is for You?
There aren't as many refinance loan options as there are borrowers, but it feels like it sometimes! We can guide you to select the loan program that will fit your needs the best. Call us at (707) 252-2700 to get things started. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are achieving better mortgage payments and an improved rate your main refinance goals? If so, applying for a low, fixed-rate loan may be a wise choice for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage, even if interest rates rise. If you plan to live in your home for about five more years, a fixed-rate loan may be a particulary good option for you. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate to get lower monthly payments.
Is "cashing out" your main reason for your refinance? It could be you want to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. In this case, you need to get a loan higher than the balance remaining of your current mortgage.With this goal, you want to qualify for a loan program for a bigger amount than the balance remaining on your existing mortgage. You may not increase your mortgage payemnt, however, if you have had your existing mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you hold other debt, maybe with higher interest, that you need to consolidate? If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars in your budget each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while beefing up your home equity more quickly? In that case, you'll want to find out about refinancing to a short term mortgage - for example, a fifteen-year loan. The mortgage payments will probably be more than with the longer term loan, but the pay-off is: you will pay considerably less interest and will build up equity more quickly. However, if you have held your existing thirty year mortgage for a long time and the remaining balance is rather low, you may be able to do this without raising your monthly payment — you may even be able to save! To help you figure out your options and the multiple benefits in refinancing, please call us at (707) 252-2700. We can help you reach your goals!
Want to know more about refinancing? Call us at (707) 252-2700.