Which Refinancing Option is Right for You?
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There are a huge number of refinancing options available to borrowers. Call us at 916-969-6537 and we'll work with you to qualify you for the right refinance loan program to fit your situation. There are several things to bear in mind while you consider your options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a wise option for you. Maybe you are currently in a mortgage with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low rate for the term of your loan. This kind of loan can be especially a wise idea if you aren't planning a move within the next five years or so. However, if you can see yourself moving before too long, an ARM with a low initial rate may be the best way to bring down your monthly payments. Refinancing can also cause your finance charges to be higher over the life of the loan.
Is your refinance goal mainly to "cash out" some home equity? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you will want to find a loan for more than the remaining balance of your current mortgage loan.Then you will want However, if your mortgage rate is currently high and you've had it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Do you want to cash out a portion of your home equity to consolidate other debt? Great plan! If you have any debt with higher interest (such as credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the equity built up to make it work.
Getting a Shorter Term Loan
Are you wanting to fatten your equity faster, and pay your mortgage loan off more quickly? Then, you'll need to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. Although your monthly payments will likely be increased, you can be paying less interest; so your equity will build up faster. However, if you've held your existing 30-year mortgage loan for a long time and the loan balance is somewhat low, you may be able to do this without increasing your mortgage payment — you may even be able to save! To help you figure out your options and the numerous benefits of refinancing, please call us at
916-969-6537. We are here to help you reach your goals!
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