Refinancing: Which Program is for You?
Although it seems like it sometimes, there are not as many refinance choices as there are applicants! Contact us at (916) 434-8915 and we will match you with the refinance loan program that best fits you. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best choice could be a low fixed-rate loan. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in that low rate for the term of your mortgage. This can be especially a wise option if you aren't planning a move within the next 5 years or so. However, if you can see yourself selling your home before too long, an ARM with a small initial rate may be the ideal way to reduce your monthly payments.
Are you planning to cash out some of your equity in your refinance? Perhaps you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are updating your kitchen. So you will want to find a loan higher than the remaining balance on your present mortgage loan.So you want to qualify for a loan program for a bigger amount than the balance remaining on your present mortgage loan. You may not increase your mortgage payemnt, though, if you have had your existing mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you hold other debt, maybe with higher interest, that you need to consolidate? If you have enough home equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) may help save you a chunk of cash every month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your home equity quicker? Then, you'll want to look into refinancing to a short term mortgage - like a fifteen-year mortgage program. Your monthly payments will probably be more than with the longer term mortgage, but in exchange, you will pay substantially less interest and can build up equity quicker. Conversely, if your existing longer term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the move without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at (916) 434-8915. We are here for you.
Curious about refinancing? Call us: (916) 434-8915.