Choosing a Refinancing Program
The huge number of refinance options available can be overwhelming. Call us at (916) 434-8915 and we can match you with the refinance program that fits you best. What do you hope to achieve with refinancing? Considering in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good option may be a low fixed-rate loan. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a good choice if you don't think you will move within the next five years or so. However, if you can see yourself selling your home before too long, an ARM with a small initial rate might be the best way to reduce your monthly payment.
Is "cashing out" your primary purpose for your refinance? Maybe you need to update your kitchen, take care of your college kid's tuition, or go on a dream vacation. So you'll need to find a loan above the remaining balance on your present mortgage.Then you need If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Perhaps you hope to pull out a portion of the equity (cash out) to put toward other debt. If you own some debt with steep interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of equity.
Paying it off Sooner
Do you plan to build up home equity more quickly, and have your mortgage paid off more quickly? Then, you need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Even though your monthly payment amount will probably be increased, you will be paying less interest; so your equity amount will build up faster. However, if you've had your existing thirty year loan for a number of years and the remaining balance is rather low, you may be able to do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits in refinancing, please contact us at (916) 434-8915. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call: (916) 434-8915.