Selecting a Refinancing Option
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There are not as many refinance loan programs as there are applicants, but it seems like it at times! Call us at 530-677-2703 and we can work with you to qualify you for the right refinance program to fit your situation. What are your goals for refinancing? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are achieving lower mortgage payments and a better rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan could be a good option for you. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the loan, even as interest rates rise. If you are expecting to live in your home for about five more years, a loan with a fixed rate may be an especially good choice for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower mortgage payments. By refinancing your existing mortgage loan, your total finance charges could be more over the life of the loan.
Getting Out Some Cash
Are you refinancing mainly to pull out some equity for an infusion of cash? It could be you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you'll want to get a loan above the remaining balance of your existing mortgage loan.In that case, you You will be looking for a loan for a bigger amount than the balance remaining with your current mortgage loan in that case. You may not increase your mortgage payment, though, if you have had your existing mortgage for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you hope to pull out some equity (cash out) to use toward other debt. If you have some higher interest debts (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough equity.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while beefing up your equity more quickly? If this is your wish, the refinance mortgage can move you to a loan program with a shorter term, like a 15 year loan. The mortgage payments will probably be more than with the long-term mortgage, but the pay-off is: you will pay considerably less interest and will build up equity more quickly. But, you may be able to make the change without much increase in your monthly payment if your long term loan was closed a while ago, and the balance remaining is low enough. You could even make it lower! To help you figure out your options and the numerous benefits in refinancing, please contact us at
530-677-2703. We are here for you.
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