Selecting a Refinancing Option
Although it seems like it sometimes, there are not as many refinance options as there are applicants! Contact us at (916) 434-8915 and we will match you with the refinance loan program that fits you best. In the interest of looking at your choices, you will need to determine what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan may be a wise option for you. Maybe you currently hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set the low interest rate for the term of your mortgage. If you expect to stay in your home for at least five more years, a fixed rate mortgage may be an especially good option for you. On the other hand, if you can see yourself moving in the near future, an ARM mortgage with a small initial rate could be the best way to reduce your monthly payments.
Is your refinance goal primarily to "cash out" some home equity? Your home needs updating; your son has gone to college and needs tuition money; or you are taking your family on a cruise. Then you will want to get a loan for more than the remaining balance of your existing mortgage.With this goal, you'll need You might not have an increase in your monthly payemnt, though, if you have had your current loan for a number of years, and/or your loan interest rate is high.
Do you have other debt, maybe with a high interest rate, that you need to consolidate? If you have any debt with high interest (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have enough home equity.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while building up your equity quicker? If this is your goal, your refinance can switch you to a mortgage loan program with a shorter term, such as a 15 year loan. The payments will likely be higher than with the longer term mortgage loan, but in exchange, you will pay considerably less interest and will build up equity quicker. However, if you have had your current thirty-year loan for a long time and the remaining balance is somewhat low, you may be able to do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the many benefits of refinancing, please contact us at (916) 434-8915. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call: (916) 434-8915.