Selecting a Refinancing Program

There aren't as many loan program choices as there are applicants, but it seems like it sometimes! We can help you select the loan program that will fit your financial situation the best. Contact us at (916) 434-8915 to get started. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.

Reducing Your Monthly Payments

Are getting better mortgage payments and an improved rate your main reasons for refinancing? If so, getting a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even when rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low interest rate for the life of your loan. This kind of loan is especially a wise choice if you don't expect to sell your home within the next five years or so. However, an ARM with a low intitial payment may be a wiser way to reduce your monthly payments if you plan on moving in the near future.

Cashing Out

Are you wanting to cash out some of your equity with your refinance? Your house needs new carpet; your son has been accepted to college and needs tuition money; or you are planning a special vacation. With this in mind, you'll need to find a loan above the remaining balance on your present mortgage.With this goal, you will You will be looking for a loan for a higher amount than the balance remaining with your current mortgage loan in that case. You may not have an increase in 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 have other debt, perhaps with higher interest, that you need to consolidate? If you have the home equity for it, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you can possible save several hundred dollars in your budget each month.

Switching to a Shorter Term Loan

Do you hope to build up equity quicker, and have your mortgage paid off more quickly? If this is your hope, the refinance mortgage can switch you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and growing your equity more quickly, even though your mortgage payments will likely be higher than they were. However, if you have held your current thirty year mortgage loan for a number of years and the remaining balance is somewhat low, you could be do this without raising your monthly mortgage payment — you could even be able to save! To help you understand your options and the numerous benefits in refinancing, please call us at (916) 434-8915. We can help you reach your goals!

Want to know more about refinancing? Call us: (916) 434-8915.

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