Which Refinancing Option is Best for You?
There are an enormous number of refinancing options available to borrowers. Contact us at (707) 252-2700 and we will match you with the refinance program that fits you best. In the interest of looking at your choices, you can consider your goals for the refinance.
Lowering Your Payments
Are achieving reduced payments and a better rate your main refinance goals? Then a good option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage loan, even when interest rates rise. This can be especially a wise idea if you don't think you will move within the next five years or so. However, an ARM with a low intitial payment may be a wiser way to lower your monthly payments if you see yourself moving in the next few years.
Getting Out some Cash
Is your refinance goal mainly to pull out some equity for an infusion of cash? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. In this case, you want to qualify for a loan for more than the balance remaining of your present mortgage.Then you'll want to find a loan for a bigger number than the remaining balance on your existing mortgage. If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.
Consolidating Your Debt
Do you hold other debt, maybe with higher interest, that you want to consolidate? If you hold any higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Do you hope to build up equity more quickly, and have your mortgage paid off sooner? If this is your hope, your refinance loan can move you to a mortgage loan program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your home equity more quickly, although your monthly payments will likely be higher than you have been paying. However, if you've held your current thirty year loan for a number of years and the loan balance is rather low, you might be able to do this without increasing your monthly mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits of refinancing, please contact us at (707) 252-2700. We will help you reach your goals!
Want to know more about refinancing? Give us a call at (707) 252-2700.