Selecting a Refinancing Loan
There are an enormous number of refinancing options available to borrowers. We can help you choose the refinance loan program that can fit your financial situation the best. Contact us at (916) 434-8915 to get things started. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, the best option could be a low fixed-rate loan. Perhaps you now hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest can vary. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you expect to stay in your home for about five more years, a fixed-rate loan may be a particulary good fit for you. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you are planning some home improvements. With this in mind, you need to get a loan for more than the remaining balance of your existing mortgage.In this case, you want You may not increase your mortgage payemnt, however, if you've had your existing mortgage for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to pull out some equity to consolidate additional debt? Yes you can! If you have built up some home equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could help save you a chunk of cash each month.
Paying it off Sooner
Do you want to build up home equity more quickly, and pay off your mortgage more quickly? If this is your plan, your refinance can change you to a loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your equity faster, even though your payments will likely be bigger than they were. Conversely, if your existing long-term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the switch without paying more each month. To help you determine your options and the multiple benefits in 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 at (916) 434-8915.