Refinancing: Which Option is for You?
When you are overwhelmed with all the options, it may seem as if there are even more loan programs than applicants! Call us at (707) 252-2700 and we can match you with the refinance loan program that is ideal for your needs. In the interest of looking at your options, you can list your goals for your refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then the best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even as interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a wise choice. On the other hand, if you do see yourself moving before too long, an ARM mortgage with a low initial rate could be the best way to lower your monthly payments.
Getting Out some Cash
Are you wanting to cash out some of your home equity with your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you'll want to get a loan above the balance remaining on your current mortgage loan.So you will want to qualify for a loan for a higher amount than the balance remaining on your present mortgage loan. You may not have an increase in your mortgage payemnt, however, if you have had your current mortgage loan for a while, and/or your interest rate is high.
Do you hold other debt, maybe with higher interest, that you'd like to consolidate? If you have a fair amount of home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.
Paying it off Faster
Do you hope to build up equity quicker, and have your mortgage paid off more quickly? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year loan. Your monthly payments will probably be higher than they were with your longer term mortgage, but in exchange, you will pay substantially less interest and can build up equity more quickly. Conversely, if your current long-term mortgage has a low balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. To help you understand your options and the numerous 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 at (707) 252-2700.