Refinancing: Which Program is for You?

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When you are overwhelmed with all the options, it may seem as if there are even more refinance loan programs than applicants! Contact us at 916-989-6222 and we'll help you qualify for the right refinance loan to fit your needs. There are some general questions to ask yourself while you consider the options.

Making Your Payments Lower

Are getting reduced mortgage payments and an improved rate your main refinance goals? 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. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your loan, even if interest rates rise. If you are planning to live in your home for at least five more years, a fixed rate loan may be an especially good fit for you. However, if you do see yourself selling your home in the near future, an ARM mortgage with a low initial rate may be the best way to bring down your monthly payment.

Getting Out some Cash

Are you hoping to cash out some of your home equity with your refinance? Perhaps you need to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. In this case, you want to get a loan above the remaining balance on your present mortgage loan.Then you want However, if your interest rate is currently high and you've held it for a long time, you could be able to accomplish your goals without making your monthly payments bigger.

Debt Consolidation

Perhaps you'd like to cash out some equity in your home (cash out) to put toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars monthly.

Paying it off Faster

Are you dreaming of paying your loan off sooner, while building up your equity more quickly? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. Although your mortgage payments will probably be more, you can save on interest; so your home equity will rise up faster. However, if you've had your current thirty-year mortgage for a long time and the loan balance is somewhat low, you might be able to do this without raising your mortgage payment — you could even be able to save! To help you determine your options and the multiple benefits in refinancing, please contact us at 916-989-6222. We can help you reach your goals!

Curious about refinancing your home? Call us at 916-989-6222.