Which Refinancing Loan Program is Best for You?

 


There aren't as many refinance loan options as there are borrowers, but it feels like it at times! Call us at 916-821-7884 and we will match you with the loan program that fits you best. There are some general questions to ask yourself as you consider the options.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the ideal loan program for you. Maybe you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low interest rate for the life of your mortgage. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great choice. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments. By refinancing your existing mortgage loan, your total finance charges may be more over the life of the loan.

Refinancing to Cash Out on Your Equity

Are you hoping to cash out some of your equity in your refinance? It could be you need to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. With this in mind, you will want to look for a loan above the balance remaining on your existing mortgage loan.Then you'll You will need to qualify for a loan for more than the balance remaining of your existing mortgage in this case. You may not increase your monthly payment, though, if you have had your existing mortgage for a long time, and/or your loan interest rate is high.

Consolidating Debt

Do you want to pull out a portion of your home equity to consolidate additional debt? Yes you can! If you hold any higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have enough equity.

Building up Equity Faster

Are you wanting to fatten your equity faster, and get your mortgage paid off more quickly? Consider refinancing with a short-term loan, such as a 15-year mortgage. Even though your mortgage payments will usually be more, you can be paying less interest; so your equity amount will rise up faster. But, you might be able to switch without a bigger monthly mortgage payment if your long term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you figure out your options and the multiple benefits of refinancing, please contact us at 916-821-7884. We are here for you. Apply Now

Want to know more about refinancing your home? Give Lonny Andrews a call at 916-821-7884.

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