Which Refinancing Option is Right for You?
The number of refinance options available to borrowers is truly breathtaking. Call us at (707) 252-2700 and we can match you with the loan program that best fits you. What are your goals for 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 your best option. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even as interest rates rise. A fixed-rate mortgage can be particularly a wise option if you aren't expecting a move within the next 5 years or so. However, an ARM with a low intitial payment may be a smarter way to lower your payments if you expect to move within the near future.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Perhaps you need to update your kitchen, take care of your college kid's tuition, or take your dream vacation. With this in mind, you'll need to qualify for a loan for more than the remaining balance of your existing mortgage loan.Then you will want to find a loan for a bigger amount than the balance remaining on your existing mortgage loan. You may not have an increase in your mortgage payemnt, however, if you have had your current mortgage for a long time, and/or your interest rate is high.
Maybe you hope to cash out some of the home equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars each month.
Paying it off Sooner
Are you dreaming of paying your loan off sooner, while beefing up your equity faster? Consider refinancing to a short-term loan, often a 15-year mortgage loan. The mortgage payments will probably be more than they were with your long-term mortgage, but the pay-off is: you will pay substantially less interest and will build up equity quicker. But, you could be able to switch without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while ago, and the remaining balance is small. You could even make it lower! To help you determine your options and the many benefits of refinancing, please call us at (707) 252-2700. We are here for you.
Want to know more about refinancing your home? Call us: (707) 252-2700.