Refinancing: Which Program is for You?
Although it may seem like it at times, there are not as many refinance loan options as there are borrowers! We can guide you to select the refinance program that can fit your situation the best. Contact us at (916) 434-8915 to get started. What are your reasons for your refinance loan? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving better mortgage payments and a better rate your main refinance goals? In that case, a good choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if interest rates rise, a fixed rate mortgage loan will 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 particularly be a wise option. However, an ARM with a initial low payment may be a smarter way to reduce your payments if you expect to move within the near future.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Your house needs new carpet; your daughter has gone to college and needs tuition money; or you are taking your family on a cruise. In this case, you want to find a loan above the balance remaining on your present mortgage loan.Then you will want If you've had your existing mortgage for quite a while and/or have a mortgage with high interest, you might\could be able to do this without increasing your mortgage payment.
Perhaps you'd like to cash out some of the home equity (cash out) to put toward other debt. If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.
Getting a Shorter Term Loan
Do you hope to build up equity quicker, and have your mortgage paid off sooner? You should consider refinancing with a short-term loan, such as a 15-year mortgage. Even though your monthly payments will usually be more, you can be paying less interest; so your equity will build up faster. But, you could be able to switch without a higher monthly payment if your long term loan was closed a while back, and the remaining balance is small. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at (916) 434-8915. We are here to help you reach your goals!
Want to know more about refinancing? Give us a call at (916) 434-8915.