Which Refinancing Loan Program is Best for You?
Even though it may seem like it at times, there aren't as many loan programs as there are borrowers! Call us at (707) 252-2700 and we can work with you to qualify you for the right loan program for your situation. What do you hope to achieve with refinancing? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your loan, even when interest rates rise. This kind of loan can be particularly a good choice if you don't expect to move within the next five years or so. However, if you do see yourself selling your home in the near future, an ARM with a small initial rate might be the ideal way to lower your monthly payment.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? It could be you're going on a much needed vacation; you have to pay college tuition for your child; or you are planning some home improvements. So you will want to get a loan for more than the remaining balance of your existing mortgage loan.With this goal, you will need However, if your mortgage rate is high now and you have held it for a long time, you could be able to accomplish your goals without an increase in your mortgage payment.
Do you want to pull out some of your home equity to consolidate additional debt? Good plan! If you have some higher interest debts (like credit cards or car loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the right amount of equity.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your home equity quicker? Consider refinancing with a short-term loan, often a 15-year mortgage loan. Although your mortgage payment amount will probably be more, you will be paying less interest; so your home equity will build up faster. But, you could 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 somewhat low. You could even make it lower! To help you figure out your options and the numerous benefits of refinancing, please contact us at (707) 252-2700. We can help you reach your goals!
Want to know more about refinancing your home? Call us at (707) 252-2700.