Benicia , California was founded in 1847 and was named the state capital of California in 1853. That designation lasted about a year, and then Sacramento was chosen as the state capital. Benicia is a city in Solano County, California and is near the western coast of California, near the middle of the state. It is near the San Francisco Bay area and had a population closing in on 27,000 in the year 2000.
Do you live in Benicia and enjoy the beautiful scenery, the coastal area, and all that Suisin Bay has to offer? Do you have an existing mortgage in Benicia and think that it is time to refinance to a lower interest rate and try to reduce your monthly mortgage payments? Let’s consider your options.
Refinance Loans
Do you have a fixed rate mortgage loan and want to refinance to an adjustable rate mortgage? Do you have an adjustable rate mortgage loan and want to refinance to a great fixed rate mortgage? Either way, you will find a solution that works best for you.
A fixed rate mortgage is a loan with a fixed interest rate that will never change, regardless of what happens in the economy or market indexes. You will also have a fixed monthly mortgage payment that will be steadfast and that you can depend on each month. The loan term for a fixed rate mortgage is typically either 15 or 30 years. If you can lock in to a good interest rate, you get to keep it for the life of your loan.
An adjustable rate mortgage is a loan with an interest rate that is not fixed, but starts out lower than an average interest rate for the first few years. In those initial years of your loan, you can save a lot of money on your monthly mortgage payments. After the first few years, the interest rate has the option to change, according to the current economic climate and market conditions. The interest rate can rise or fall with the current times, and so can your monthly mortgage payment. This can be good if your interest rate lowers further. You will need to be flexible with this option, as you may not know from month-to-month the amount of your monthly mortgage payment. The term of your loan may change also. Remember, you can refinance at a later date to fit the needs of your financial situation.
Other options available to you include a 50-year mortgage option, an interest-only loan option, an options ARM payment, and a balloon loan option.
A 50-year mortgage option is a great option if your home has a high price tag. This payment method allows you to spread your mortgage payments over a 50-year timeframe.
An interest-only loan lets you pay only the interest on your loan for the first 10 years. You can save an incredible amount of money this way, but you need to remember that after the first 10 years, you will need to start repaying the principal amount of the loan, as well as the interest.
With an options ARM, you have a choice of payment method. You can choose from a minimum payment, an interest-only loan, a 15-year amortized amount, or a 30-year amortized amount. You choose what fits your lifestyle and financial resources best.
A balloon loan is a great option if you plan on selling your home in five years’ time. A balloon loan will get you the lowest interest rate available, but the loan matures in five years. You need to plan wisely with this option.
Speak with your lender to determine which loan option is right for you.
Home Equity Loans
If you have an existing mortgage and want to learn more about a home equity loan option, that avenue is open to you as well. A home equity loan lets you withdraw the equity built up in your home in a cash lump sum payment. Equity is the difference between your home’s value and the amount you still owe on your loan.
If you want to learn more about the refinance or mortgage options available to you in Benicia, California, or if you want to learn more about a home equity loan option, simply complete the form below.
