Which Refinancing Option is Right for You?

Although it may seem like it at times, there are not as many loan programs as there are applicants! Contact us at (916) 399-5500 and we will work with you to qualify you for the perfect refinance loan program to fit your financial situation. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. 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. This kind of loan can be particularly a wise idea if you don't think you will sell your home within the next five years or so. However, if you do see yourself moving before too long, an adjustable rate mortgage with a small initial rate could be the best way to reduce your monthly payments.

Refinancing to Cash Out

Is "cashing out" your main purpose for refinancing? Your house needs updating; your son has been accepted to University and needs tuition money; or you are planning a special vacation. So you'll want to apply for a loan above the balance remaining on your current mortgage.Then you'll want You might not have an increase in your mortgage payemnt, though, if you have had your current mortgage for a while, and/or your loan interest rate is high.

Debt Consolidation

Do you hold other debt, maybe with high interest, that you'd like to consolidate? If you have a fair amount of equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a lot of money every month.

Switching to a Shorter Term Loan

Are you planning to fatten your equity faster, and get your mortgage paid off sooner? In that case, you'll want to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. You will be paying less interest and increasing your equity faster, even though your payments will generally be bigger than they were. On the other hand, if your existing longer term mortgage has a low balance remaining, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you understand your options and the multiple benefits in 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.

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