Selecting a Refinancing Program
The huge number of refinance options available can be overwhelming. We can help you find the refinance program that can fit your financial situation the best. Call us at 703.255-5810 to get started. There are some general things to have in mind while you consider the 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 could be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a fixed rate loan may be an especially good fit for you. On the other hand, if you can see yourself selling your home in the near future, an ARM with a small initial rate might be the ideal way to lower your monthly payment.
Getting Out some Cash
Are you hoping to cash out some of your equity with your refinance? Perhaps you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you'll want to get a loan for more than the remaining balance on your current mortgage loan.Then you'll need However, if your interest rate is high now and you've held it for quite a few years, you may be able to achieve your goals without making your monthly payments rise.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate other debt? Great idea! If you have any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Building up Equity More Quickly
Do you need to build up home equity more quickly, and have your mortgage paid off more quickly? Then, you want to look into refinancing to a short term mortgage - like a fifteen-year mortgage program. Your monthly payments will likely be higher than they were with the longer term mortgage, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. Conversely, if your existing long-term mortgage has a small balance remaining, and was closed a while ago, you might be able to make the move without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at 703.255-5810. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call: 703.255-5810.