Refinancing: Which Program is for You?
When you are overwhelmed with all the options, it may seem as if there are even more refinance programs than borrowers! Call us at 703.255-5810 and we can work with you to qualify you for the right refinance program for your financial needs. In order to review your choices, you will need to list your goals for your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan might be a wise choice for you. Perhaps you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This kind of loan can be especially a good option if you aren't planning a move within the next five years or so. However, an ARM with a initial low payment may be a better way to reduce your mortgage payments if you expect to move in the next few years.
Is "cashing out" your primary purpose for refinancing? Your house needs improvements; your daughter has been accepted to college and needs tuition; or you have a special family vacation planned. In this case, you'll need to get a loan above the balance remaining on your current mortgage.In that case, you will want to find a loan program for a higher number than the balance remaining on your existing mortgage. However, if your mortgage rate is currently high and you've had it for quite a few years, you could be able to reach your goals without a rise in your mortgage payment.
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 debt with higher interest than the rate on your mortgage (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 wanting to fatten your equity faster, and get your mortgage paid off sooner? Consider refinancing with a shorterterm loan, like a 15-year mortgage. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will likely be bigger than you have been paying. On the other hand, if your current longer term mortgage has a small remaining balance, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you determine your options and the numerous benefits in refinancing, please call us at 703.255-5810. We will help you reach your goals!
Want to know more about refinancing? Call us at 703.255-5810.