Refinancing: Which Option is for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than applicants! Call us at (707) 252-2700 and we will work with you to qualify you for the perfect refinance loan to fit your needs. There are several questions to ask yourself while you review your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a wise choice for you. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good choice. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced payments.
Refinancing to Cash Out
Are you refinancing mainly to pull out some of your equity for an infusion of cash? Your house needs improvements; your daughter has been accepted to college and needs tuition; or you are planning a special vacation. With this in mind, you will need to qualify for a loan above the balance remaining of your present mortgage.In this case, you will You'll need to apply for a loan for more than the balance remaining on your current mortgage in that case. However, if your mortgage rate is currently high and you have held it for quite a few years, you could be able to achieve your goals without making your monthly payments increase.
Perhaps you hope to pull out some equity (cash out) to use toward other debt. If you have built up some equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a lot of cash each month.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while beefing up your equity faster? Consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. Even though your monthly payments will probably be more, you will save on interest; so your home equity will build up faster. Conversely, if your current long-term mortgage loan has a low balance remaining, and was closed a while ago, you might be able to make the move without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at (707) 252-2700. We can help you reach your goals!
Curious about refinancing your home? Call us: (707) 252-2700.