Refinancing: Which Option is for You?
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There are an enormous number of refinancing programs available to borrowers. We can help you find the loan program that will fit your needs the best. Contact us at (707) 521-3434 Ext. 23 to begin the process. surveying your choices, you need to list what you want to achieve with your refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan may be a good choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your loan, even as interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a good choice. However, an ARM with a low initial payment may be a better way to lower your payments if you plan on moving in the next few years.
Refinancing to Cash Out
Are you hoping to cash out some of your equity in your refinance? It could be you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you'll need to find a loan above the remaining balance of your present mortgage.In this case, you want to need to qualify for a loan program for a higher amount than the balance remaining on your present mortgage. If you've had your current mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have built up some home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a lot of money each month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your home equity faster? In that case, you want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. You will be paying less interest and increasing your equity faster, even though your mortgage payments will generally be more than you have been paying. On the other hand, if your current longer term loan has a small remaining balance, and was closed a number of years ago, you might be able to make the move without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please call us at (707) 521-3434 Ext. 23. We are here to help you reach your goals!
Curious about refinancing your home? Give us a call at (707) 521-3434 Ext. 23.