Which Refinancing Loan Program is Right for You?
The huge number of refinance options available can be overwhelming. We can guide you to select the refinance program that can fit your situation the best. Contact us at (916) 434-8915 to begin the process. What are your reasons for your refinance loan? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage loan, even if interest rates rise. If you plan to live in your home for at least five more years, a fixed rate mortgage may be a particulary good option for you. However, an ARM with a low intitial payment could be a wiser way to reduce your mortgage payments if you plan on moving in the next few years.
Are you refinancing primarily to pull out some home equity for an infusion of cash? It could be you need to pay for home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you'll want to qualify for a loan for more than the remaining balance on your present mortgage loan.In that case, you'll want to find a loan program for a bigger amount than the balance remaining on your present mortgage. However, if your interest rate is high now and you've had it for a long time, you could be able to achieve your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you hold some higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Getting a Shorter Term Loan
Do you plan to build up home equity more quickly, and pay off your mortgage sooner? You should consider refinancing to a shorterterm loan, often a 15-year mortgage loan. Although your monthly payment amount will usually be increased, you can be paying less interest; so your home equity will build up faster. Conversely, if your current long-term mortgage loan has a small balance remaining, and was closed a while ago, you might be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at (916) 434-8915. We can help you reach your goals!
Curious about refinancing? Call us at (916) 434-8915.