Which Refinancing Loan Program is Right for You?
The number of refinance options available is truly breathtaking. Contact us at (707) 252-2700 and we can match you with the loan program that is best for you. There are several questions to ask yourself as you consider your choices.
Reducing Your Monthly Payments
Are getting lower monthly payments and an improved rate your main reasons for refinancing? Then your best choice could be a low fixed-rate loan. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set that low rate for the term of your mortgage. If you are not expecting to move in the near future (about 5 years), a fixed-rate mortgage can particularly be a great option. 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 lower monthly payments.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you will need to look for a loan higher than the balance remaining on your current mortgage loan.Then you will want to find a loan program for a higher amount than the remaining balance on your existing mortgage. You may not have an increase in your mortgage payemnt, though, if you've had your existing mortgage for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with a higher interest rate, that you want to consolidate? If you have the home equity for it, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars monthly.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off faster, while beefing up your home equity more quickly? In that case, you'll want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. You will be paying less interest and growing your home equity faster, although your payments will generally be bigger than you were paying. But, you could be able to switch without a higher monthly mortgage payment if your longer term mortgage loan was closed a while back, and the balance remaining is somewhat low. You could even pay less! To help you understand your options and the many benefits in refinancing, please call us at (707) 252-2700. We would love to help you reach your goals!
Curious about refinancing? Give us a call at (707) 252-2700.