Refinancing: Which Option is for You?
The number of refinance options available to borrowers is truly breathtaking. Contact us at (916) 434-8915 and we will match you with the refinance loan program that best fits you. There are some general questions to ask yourself while you consider the choices.
Lowering Your Payments
Are getting lower mortgage payments and an improved rate your main reasons for refinancing? In that case, a good option might be a low fixed-rate loan. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage, even when interest rates rise. This is especially a wise idea if you don't think you will sell your home within the next five years or so. However, an ARM with a low intitial payment could be a better way to reduce your payments if you plan on moving in the next few years.
Getting Out some Cash
Are you wanting to cash out some of your equity in your refinance? Maybe you want to make home improvements, take care of your college kid's tuition, or go on a special family vacation. So you will need to apply for a loan higher than the balance remaining on your present mortgage.So you You will want to apply for a loan for a higher amount than the balance remaining of your current mortgage in that case. You might not increase your monthly payemnt, however, if you have had your existing mortgage for a while, and/or your interest rate is high.
Do you want to cash out some of your equity to consolidate additional debt? Great plan! If you hold some higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate 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 faster? Consider refinancing with a shorterterm loan, often a 15-year mortgage. The payments will probably be more than they were with a long-term mortgage loan, but the pay-off is: that you will pay quite a bit less interest and will build up equity quicker. But, you may be able to switch without a higher monthly mortgage payment if your long term mortgage was closed a while ago, and the balance remaining is small. You may even make it lower! To help you determine your options and the numerous benefits of refinancing, please contact us at (916) 434-8915. We are here for you.
Curious about refinancing? Give us a call at (916) 434-8915.