Refinancing: Which Program is for You?
When you are overwhelmed with all the options, it may seem as if there are even more loan programs than borrowers! We can guide you to find the refinance loan program that can fit your financial situation the best. Call us at (707) 252-2700 to get things started. In order to review your choices, you can list your goals for your refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even when interest rates rise. If you are expecting to stay in your home for about five more years, a fixed-rate loan may be a particulary good fit for you. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower monthly payments.
Is your refinance goal primarily to "cash out" some home equity? Your house needs improvements; your daughter has been accepted to University and needs tuition money; or you have a special family vacation planned. With this in mind, you want to find a loan for more than the remaining balance on your current mortgage.So you will need However, if your mortgage rate is currently high and you've held it for quite a few years, you could be able to achieve your goals without making your monthly payments rise.
Perhaps you'd like to pull out some of the equity in your home (cash out) to use toward other debt. If you own some higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Switching to a Shorter Term Loan
Do you need to build up equity more quickly, and have your mortgage paid off sooner? If this is your plan, the refinance mortgage can change you to a mortgage program with a short, like a 15 year loan. Although your monthly payments will likely be more, you can save on interest; so your equity will rise up faster. But, you may be able to make the change without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You may even pay less! To help you understand your options and the many benefits in refinancing, please call us at (707) 252-2700. We will help you reach your goals!
Curious about refinancing your home? Give us a call: (707) 252-2700.