Which Refinancing Loan Program is Best for You?
Although it may seem like it sometimes, there are not as many refinance loan options as there are borrowers! Contact us at (707) 252-2700 and we can match you with the loan program that best fits you. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the best loan program for you. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you plan to live in your home for about five more years, a loan with a fixed rate may be a particulary good choice for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Getting Out some Cash
Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? It could be you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you want to find a loan higher than the balance remaining of your current mortgage.Then you will want You might not increase your monthly payemnt, however, if you've had your current mortgage loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out some of your equity to consolidate other debt? Good plan! If you have the equity in your home to make it work, 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 a month.
Switching to a Shorter Term Loan
Are you hoping to fatten up your equity faster, and pay off your mortgage sooner? You should consider refinancing to a short-term loan, like a 15-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, although your monthly payments will usually be more than you have been paying. However, if you've held your existing 30 year mortgage loan for a number of years and the loan balance is relatively low, you may be do this without increasing your monthly payment — it's even possible to save! To help you figure out your options and the many benefits in refinancing, please contact us at (707) 252-2700. We are here for you.
Want to know more about refinancing your home? Call us: (707) 252-2700.