Refinancing: Which Program is for You?
The number of refinance options available to borrowers can be overwhelming. We can help you select the refinance program that can fit your needs the best. Contact us at (916) 399-5500 to get things started. What are your reasons for your refinance loan? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right loan program for you. Perhaps 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). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even as interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a wise loan option. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.
Are you wanting to cash out some of your home equity in your refinance? Your home needs new carpet; your daughter has gone to University and needs tuition money; or you are planning a special vacation. In this case, you need to get a loan above the balance remaining on your current mortgage loan.In that case, you want to need to get a loan for a higher number than the remaining balance on your existing mortgage. You might not have an increase in your mortgage payemnt, however, if you have had your existing mortgage loan for a while, and/or your interest rate is high.
Do you hold other debt, maybe with high interest, that you'd like to consolidate? If you have a fair amount of home equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.
Building up Equity Faster
Are you dreaming of paying off your loan faster, while beefing up your home equity faster? If this is your goal, the refinance loan can move you to a mortgage program with a short, like a 15 year loan. Your payments will likely be more than with a long-term loan, but in exchange, you will pay substantially less interest and will build up equity quicker. On the other hand, if your current longer term loan has a low remaining balance, and was closed a while ago, you could be able to make the change without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please call us at (916) 399-5500. We are here for you.
Curious about refinancing? Give us a call: (916) 399-5500.