Refinancing: Which Program is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more loan programs than applicants! Contact us at (916) 434-8915 and we will help you qualify for the perfect refinance loan to fit your needs. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Are getting reduced payments and a better rate your main reasons for refinancing? In that case, applying for a low, fixed-rate loan may be a wise option for you. Maybe you currently have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage loan, even if interest rates rise. If you are expecting to live in your home for at least five more years, a fixed rate mortgage may be an especially good choice for you. However, if you do see yourself selling your home before too long, an ARM mortgage with a small initial rate could be the ideal way to bring down your monthly payment.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? Perhaps you want to update your kitchen, pay your child's college tuition bill, or go on a an Alaskan cruise. In this case, you'll need to get a loan higher than the remaining balance of your current mortgage loan.With this goal, you want However, if your mortgage rate is high now and you've had it for a long time, you could be able to reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you want to pull out some of your equity to consolidate other debt? Great plan! If you have some higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have enough home equity.
Paying it off Faster
Are you planning to fatten up your home equity faster, and get your mortgage paid off sooner? You should consider refinancing with a short-term loan, like a 15-year mortgage loan. Although your mortgage payment amount will usually be increased, you can be paying less interest; so your equity will rise up faster. On the other hand, if your current longer term loan has a low balance remaining, 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 many benefits of refinancing, please contact us at (916) 434-8915. We are here for you.
Want to know more about refinancing? Give us a call: (916) 434-8915.