Selecting a Refinancing Loan
Although it seems like it sometimes, there aren't as many loan options as there are borrowers! Contact us at (916) 434-8915 and we will match you with the loan program that is ideal for your needs. There are several things to keep in mind as you review your choices.
Reducing Your Monthly Payments
Are getting better payments and a better rate your main reasons for refinancing? If so, your best choice might be a low fixed-rate loan. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even as interest rates rise. A fixed-rate mortgage is particularly a good option if you aren't planning a move within the next five years or so. However, if you do see yourself moving within the next few years, an ARM with a small initial rate may be the best way to lower your monthly payment.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Maybe you're going on a much needed vacation; you have to pay college tuition for your child; or you are updating your kitchen. So you will want to look for a loan for more than the balance remaining on your existing mortgage loan.So you will You will be looking for a loan for more than the current balance of your existing mortgage in that case. However, if your interest rate is currently high and you've had it for quite a few years, you may be able to reach your goals without making your mortgage payments bigger.
Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you have enough home equity, paying toward other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) may help save you a chunk of cash every month.
Building up Equity More Quickly
Are you dreaming of paying off your loan faster, while beefing up your home equity faster? If this is your goal, your refinance can change you to a loan program with a shorter term, such as a 15 year loan. Your mortgage payments will probably be more than they were with your long-term mortgage loan, but the pay-off is: you will pay substantially less interest and can build up equity more quickly. But, you could be able to make the change without much increase in your monthly payment if your long term mortgage was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you determine your options and the many benefits in refinancing, please contact us at (916) 434-8915. We are here for you.
Want to know more about refinancing your home? Call us at (916) 434-8915.