Which Refinancing Loan Program is Best for You?
When you are overwhelmed with so many choices, it may seem like there are even more loan programs than borrowers! Contact us at (707) 252-2700 and we'll help you qualify for the perfect refinance loan program for your financial needs. What are your goals for your refinance loan? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, the best option might be a low fixed-rate loan. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — with which the interest rate varies. Even if interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. This can be particularly a good choice if you don't expect to move within the next 5 years or so. 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 payments.
Getting Out some Cash
Is "cashing out" your primary reason for refinancing? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. So you will want to look for a loan for more than the remaining balance of your present mortgage.Then you'll want to find a loan for a bigger number than the remaining balance on your current mortgage loan. However, if your loan interest rate is currently high and you have held it for a long time, you may be able to achieve your goals without a rise in your mortgage payment.
Do you want to pull out some equity to consolidate additional debt? Yes you can! If you have the equity in your home for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars monthly.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your equity more quickly? In that case, you need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. Your payments will likely be more than they were with a longer term mortgage loan, but in exchange, that you will pay quite a bit less interest and will build up equity more quickly. But, you may be able to switch without a bigger monthly mortgage payment if your long term mortgage loan was closed a while ago, and the balance remaining is somewhat low. You could even make it lower! To help you understand your options and the numerous benefits of refinancing, please call us at (707) 252-2700. We are here for you.
Want to know more about refinancing? Call us: (707) 252-2700.