Selecting a Refinancing Loan
There are a huge number of refinancing programs available to borrowers. Call us at (916) 399-5500 and we can match you with the refinance loan program that best fits you. In order to review your options, you should list your goals for the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan could be a wise option for you. Maybe you are presently in a mortgage with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are planning to stay in your home for at least five more years, a fixed-rate loan may be an especially good choice for you. However, if you can see yourself moving before too long, an ARM with a small initial rate could be the ideal way to lower your monthly payments.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Maybe 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'll want to qualify for a loan above the remaining balance on your current mortgage.Then you will need You might not have an increase in your monthly payemnt, however, if you've had your existing loan for a number of years, and/or your loan interest rate is high.
Maybe you hope to cash out a portion of the equity (cash out) to use toward other debt. If you have any higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you dreaming of paying your loan off sooner, while building up your equity more quickly? Consider refinancing with a short-term loan, such as a 15-year mortgage loan. The monthly payments will likely be more than they were with your long-term mortgage, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. However, if you've held your current thirty-year mortgage loan for a long time and the remaining balance is relatively low, you might be able to do this without raising your monthly mortgage payment — you could even be able to save! To help you understand your options and the numerous benefits in refinancing, please call us at (916) 399-5500. We will help you reach your goals!
Want to know more about refinancing? Give us a call at (916) 399-5500.