Which Refinancing Option is Best for You?
There are an enormous number of refinancing programs available to borrowers. Call us at (707) 252-2700 and we can match you with the refinance program that best fits you. surveying your choices, you can consider what you want to achieve with your refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage can be particularly a good idea if you don't think you will move within the next 5 years or so. However, an ARM with a initial low payment could be a smarter way to lower your monthly payments if you expect to move in the next few years.
Are you hoping to cash out some of your home equity with your refinance? Maybe you need to update your kitchen, take care of your college kid's tuition, or take your dream vacation. In this case, you will want to apply for a loan higher than the remaining balance of your existing mortgage loan.In that case, you'll want to qualify for a loan for a bigger number than the balance remaining on your current mortgage loan. If you've had your current mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Do you want to pull out some of your home equity to consolidate additional debt? Yes you can! If you have a fair amount of home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while building up your equity faster? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage. You will be paying less interest and increasing your equity faster, even though your monthly payments will usually be higher than you were paying. However, if you've had your current thirty-year loan for a long time and the loan balance is rather low, you may be able to do this without raising your monthly payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please call us at (707) 252-2700. We are here for you.
Curious about refinancing? Give us a call at (707) 252-2700.