Refinancing: Which Loan Program is for You?

When you are overwhelmed with so many options, it may seem as if there are even more loan programs than borrowers! We can help you select the refinance program that will fit your financial situation the best. Call us at (707) 252-2700 to get started. What are your goals for refinancing? Considering in mind the following will help you begin your decision process.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a good option. However, if you can see yourself selling your home within the next few years, an ARM mortgage with a low initial rate could be the best way to bring down your monthly payment.

Cashing Out

Is your refinance goal mainly to pull out some of your equity for an infusion of cash? It could be you want to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you will want to get a loan higher than the remaining balance on your existing mortgage.Then you will want However, if your loan interest rate is currently high and you have held it for a long time, you could be able to accomplish your goals without a rise in your mortgage payment.

Consolidating Debt

Perhaps you'd like to pull out a portion of the home equity (cash out) to put toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars a month.

Getting a Shorter Term Loan

Do you plan to build up home equity more quickly, and pay off your mortgage faster? Then, you need to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. Although your mortgage payments will usually be more, you will be paying less interest; so your equity amount will build up faster. But, you may be able to switch without much increase in your monthly payment if your long term mortgage was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you figure out your options and the many benefits in refinancing, please call us at (707) 252-2700. We can help you reach your goals!

Curious about refinancing your home? Call us: (707) 252-2700.

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