Refinancing: Which Program is for You?

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The number of refinance options available to borrowers is truly breathtaking. Contact us at (916) 473-1317 and we can match you with the refinance program that is best for you. There are some general things to bear in mind while you review your choices.

Making Your Payments Lower

Are achieving better payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be the ideal option for you. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low rate for the life of your loan. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a good choice. However, if you do see yourself moving before too long, an ARM with a low initial rate could be the ideal way to reduce your monthly payments.

Refinancing to Cash Out

Is your refinance goal primarily to pull out some home equity for an infusion of cash? Your home needs renovating; your son has been accepted to college and needs tuition; or you are planning a special vacation. With this in mind, you will want to find a loan higher than the balance remaining of your present mortgage.Then you want to find a loan for a higher number than the balance remaining on your existing mortgage. However, if your interest rate is currently high and you've held it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.

Consolidating Debt

Do you want to cash out some home equity to consolidate other debt? Yes you can! If you have the equity in your home to make it work, taking care of other high interest debt (such as credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars in your budget each month.

Switching to a Shorter Term Loan

Do you need to build up equity quicker, and pay off your mortgage faster? If this is your plan, the refinance loan can switch you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and growing your equity faster, although your mortgage payments will generally be more than they were. However, if you have held your current 30-year mortgage for a number of years and the remaining balance is somewhat low, you could be do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please call us at (916) 473-1317. We will help you reach your goals!

Want to know more about refinancing? Call us: (916) 473-1317.