Selecting a Refinancing Program
The number of refinance options available can be overwhelming. Call us at (916) 434-8915 and we'll work with you to qualify you for the right refinance loan to fit your situation. There are some general questions to ask yourself as you review your options.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan might be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for at least five more years, a fixed-rate loan may be a particulary good option for you. However, if you can see yourself moving before too long, an ARM mortgage with a small initial rate might be the ideal way to bring down your monthly payments.
Is "cashing out" your main reason for refinancing? Your house needs new carpet; your daughter has been accepted to college and needs tuition; or you are planning a special vacation. With this in mind, you want to look for a loan higher than the remaining balance on your present mortgage loan.In that case, you need You may not have an increase in your monthly payemnt, however, if you have had your current mortgage loan for a while, and/or your loan interest rate is high.
Do you want to pull out a portion of your home equity to consolidate other debt? Good idea! If you have a fair amount of 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 lot of money every month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while building up your home equity faster? In that case, you'll want to look into refinancing to a short term mortgage - like a fifteen-year mortgage program. Even though your monthly payments will likely be increased, you will be paying less interest; so your home equity will build up faster. But, you may be able to make the change without a bigger monthly payment if your long term mortgage was closed a while ago, and the balance remaining is small. You may even pay less! To help you understand your options and the many benefits of refinancing, please call us at (916) 434-8915. We are here for you.
Want to know more about refinancing? Call us: (916) 434-8915.