Which Refinancing Loan Program is Best for You?
Although it seems like it sometimes, there aren't as many loan programs as there are borrowers! Call us at (916) 434-8915 and we will match you with the loan program that is ideal for you. There are several questions to ask yourself while you review your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan could be a wise choice for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — with which the rate of interest varies. Even as interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for at least five more years, a fixed rate mortgage may be an especially good choice for you. However, an ARM with a low intitial payment may be a wiser way to reduce your monthly payments if you expect to move in the next few years.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Your home needs updating; your son has been accepted to University and needs tuition money; or you are taking your family on a cruise. Then you will need to find a loan higher than the remaining balance on your current mortgage loan.With this goal, you will want to qualify for a loan program for a higher number than the remaining balance on your existing mortgage. If you've had your current mortgage for a long time and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment bigger.
Maybe you hope to pull out some of the equity (cash out) to use toward other debt. If you have enough home equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of money each month.
Paying it off Sooner
Are you dreaming of paying off your loan faster, while building up your home equity more quickly? In that case, you'll want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage loan. Even though your monthly payments will likely be increased, you will be paying less interest; so your equity amount will rise up faster. However, if you've held your current 30 year loan for a long time and the remaining balance is somewhat low, you may be do this without increasing your monthly mortgage payment — you may even be able to save! To help you figure out your options and the multiple benefits in refinancing, please contact us at (916) 434-8915. We will help you reach your goals!
Curious about refinancing? Call us at (916) 434-8915.