Refinancing: Which Option is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance loan programs than applicants! We can help you choose the loan program that will fit your situation the best. Call us at (707) 252-2700 to get started. There are some general questions to ask yourself while you look at your choices.
Making Your Payments Lower
Are achieving better payments and a lower rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the best loan program for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. This kind of loan is especially a wise idea if you aren't planning a move within the next five years or so. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get lower payments.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Perhaps you need to make home improvements, take care of your college kid's tuition, or take your dream vacation. Then you will need to find a loan higher than the remaining balance of your current mortgage loan.Then you'll You'll need to apply for a loan for a higher amount than the balance remaining of your present home loan in that case. However, if your mortgage rate is currently high and you've had 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 other debt? Yes you can! If you have built up some equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a lot of money every month.
Building up Equity Faster
Do you hope to build up equity quicker, and have your mortgage paid off faster? If this is your goal, your refinance can switch you to a mortgage program with a short, such as a 15 year loan. You will be paying less interest and increasing your equity faster, although your payments will generally be more than you were paying. But, you might be able to switch without a bigger monthly payment if your longer term loan was closed a while back, and the remaining balance is small. You may even make it lower! To help you understand your options and the multiple benefits in refinancing, please call us at (707) 252-2700. We can help you reach your goals!
Curious about refinancing? Call us: (707) 252-2700.