Which Refinancing Program is Right for You?
There are not as many loan programs as there are borrowers, but at times it seems like it! Call us at (916) 434-8915 and we can help you qualify for the perfect refinance loan program to fit your needs. surveying your options, you should think about what you want to achieve with your refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a good option for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in the low interest rate for the life of your mortgage. If you plan to stay in your home for at least five more years, a loan with a fixed rate may be an especially good fit for you. However, an ARM with a initial low payment could be a smarter way to reduce your monthly payments if you expect to move in the next few years.
Refinancing to Cash Out
Is your refinance goal primarily to "cash out" some home equity? Your home needs updating; your daughter has gone to college and needs tuition money; or you are planning a special vacation. So you'll need to find a loan for more than the remaining balance on your existing mortgage loan.So you want to qualify for a loan for a bigger amount than the balance remaining on your current mortgage. You may not increase your mortgage payemnt, though, if you've had your current loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Do you want to pull out some of your equity to consolidate other debt? Great plan! If you have built up some home equity, paying off other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a chunk of money each month.
Switching to a Shorter Term Loan
Are you planning to fatten your equity faster, and pay off your mortgage loan more quickly? Then, you'll need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage program. The 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 will build up equity quicker. However, if you have held your current 30 year mortgage loan for a number of years and the remaining balance is relatively low, you could be able to do this without increasing your mortgage payment — it's even possible to save! To help you determine your options and the many benefits in refinancing, please contact us at (916) 434-8915. We are here for you.
Curious about refinancing your home? Give us a call at (916) 434-8915.