Refinancing: Which Program is for You?
There are an enormous number of refinancing programs available to borrowers. Call us at (916) 399-5500 and we will match you with the refinance program that is ideal for your needs. There are some general things to keep in mind as you consider the choices.
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 best choice for you. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage loan, even when interest rates rise. This can be particularly a good option if you don't expect to move within the next 5 years or so. However, if you can see yourself moving within several years, an adjustable rate mortgage with a low initial rate might be the best way to bring down your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? Your house needs new carpet; your son has been accepted to University and needs tuition money; or you are taking your family on a cruise. Then you want to look for a loan higher than the balance remaining on your current mortgage.So you'll need You might not have an increase in your monthly payemnt, however, if you've had your current mortgage for a number of years, and/or your loan interest rate is high.
Do you want to pull out a portion of your equity to consolidate other debt? Good plan! If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars monthly.
Switching to a Shorter Term Loan
Are you hoping to fatten up your home equity faster, and pay your mortgage off more quickly? In that case, you need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Even though your mortgage payments will usually be increased, you will be paying less interest; so your equity amount will rise up faster. But, you might be able to make the change without a bigger monthly mortgage payment if your long term mortgage loan was closed a while ago, and the balance remaining is low. You could even pay less! To help you figure out your options and the many benefits in refinancing, please call us at (916) 399-5500. We would love to help you reach your goals!
Want to know more about refinancing your home? Give us a call at (916) 399-5500.