Refinancing: Which Loan Program is for You?
There are a huge number of refinancing options available to borrowers. Contact us at 703.255-5810 and we can match you with the refinance program that best fits you. What are your reasons for your refinance loan? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate 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 term of your mortgage, even when interest rates rise. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can especially be a great option. However, an ARM with a initial low payment could be a wiser way to reduce your monthly payments if you plan on moving in the next few years.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Your home needs renovating; your son has been accepted to University and needs tuition; or you are planning a special vacation. With this in mind, you'll need to get a loan higher than the remaining balance of your present mortgage loan.So you'll need However, if your loan interest rate is currently high and you've had it for a long time, you could be able to reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Perhaps you want to pull out some home equity (cash out) to put toward other debt. If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars a month.
Building up Equity More Quickly
Do you want to build up equity quicker, and pay off your mortgage sooner? If this is your wish, the refinance can change you to a mortgage program with a short, for example: a 15 year loan. Although your monthly payments will likely be more, you can be paying less interest; so your equity amount will build up faster. But, you may be able to make the change without a bigger monthly payment if your long term mortgage was closed a while back, and the remaining balance is low. You may even pay less! To help you determine your options and the many benefits in refinancing, please contact us at 703.255-5810. We are here for you.
Curious about refinancing? Give us a call at 703.255-5810.