When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than borrowers! Contact us at (209) 951-5100 and we can work with you to qualify you for the perfect refinance program to fit your situation. There are some general questions to ask yourself while you consider the choices.
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. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you plan to stay in your home for about five more years, a fixed rate loan may be a particularly good choice for you. However, an ARM with a initial low payment may be a better way to reduce your monthly payments if you plan on moving within the near future.
Cashing Out
Is "cashing out" your main purpose for your refinance? Your home needs renovating; your daughter has been accepted to college and needs tuition money; or you are taking your family on a cruise. In this case, you want to get a loan for more than the remaining balance of your existing mortgage.So you will You'll want to find a loan for more than the current balance on your current mortgage in that case. If you've had your current mortgage loan for a long time and/or have a mortgage whose interest rate is high, you might\could be able to do this without increasing your monthly payment.
Debt Consolidation
Perhaps you want to cash out a portion of the equity (cash out) to use toward other debt. If you own some higher interest debts (like credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Getting a Shorter Term Loan
Are you wanting to fatten your home equity faster, and pay your mortgage loan off more quickly? In that case, you need to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. Although your monthly payments will usually be more, you can save on interest; so your equity amount will rise up faster. But, you might be able to switch without much increase in your monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is somewhat low. You may even make it lower! To help you understand your options and the many benefits of refinancing, please contact us at (209) 951-5100. We will help you reach your goals!
In the Central Valley and shopping for a mortgage loan or need more information about refinancing your home?
Give me a call at (209) 470-7161 or complete the form below and I will contact you promptly.
