Refinancing: Which Option is for You?
There aren't as many refinance loan options as there are applicants, but it feels like it at times! Call us at (916) 399-5500 and we will match you with the loan program that is ideal for your needs. In order to review your options, you should consider your goals for the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even if interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you plan to live in your home for about five more years, a fixed rate loan may be a particulary good option for you. However, an ARM with a initial low payment may be a better way to lower your monthly payments if you see yourself moving within the near future.
Is "cashing out" your main purpose for refinancing? It could be you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. Then you want to look for a loan for more than the balance remaining of your present mortgage.Then you want However, if your mortgage rate is currently high and you've had it for a long time, you could be able to achieve your goals without an increase in your mortgage payment.
Do you have other debt, perhaps with higher interest, that you'd like to consolidate? If you hold any debt with high interest (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the home equity built up to make it work.
Getting a Shorter Term Loan
Do you want to build up equity more quickly, and pay off your mortgage faster? In that case, you want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. The monthly payments will likely be more than with a long-term mortgage, but in exchange, that you will pay substantially less interest and can build up equity quicker. However, if you've had your existing 30 year mortgage loan for a long time and the loan balance is rather low, you might be do this without increasing your mortgage payment — you may even be able to save! To help you understand your options and the numerous benefits of refinancing, please call us at (916) 399-5500. We are here for you.
Want to know more about refinancing? Call us at (916) 399-5500.