Which Refinancing Program is Right for You?
There aren't as many refinance loan programs as there are applicants, but sometimes it feels like it! Contact us at 703.255-5810 and we can help you qualify for the perfect refinance program for your financial needs. There are some general things to keep in mind as you consider the choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even if rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low rate for the term of your loan. A fixed-rate mortgage can be particularly a good option if you don't expect to move within the next 5 years or so. However, an ARM with a initial low payment could be a wiser way to reduce your payments if you plan on moving in the near future.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity in your refinance? Perhaps you want to make home improvements, pay your child's college tuition bill, or go on a special family vacation. In this case, you'll want to get a loan for more than the balance remaining on your present mortgage loan.So you'll need However, if your interest rate is currently high and you have held it for quite a few years, you could be able to reach your goals without making your monthly payments bigger.
Consolidating Your Debt
Do you want to cash out a portion of your equity to consolidate additional debt? Excellent idea! If you own some debt with high interest (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Paying it off Sooner
Are you wanting to fatten your home equity faster, and pay your mortgage loan off sooner? In that case, you'll need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will likely be bigger than they were. On the other hand, if your current longer term mortgage loan has a low remaining balance, and was closed a while ago, you may even be able to make the change without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at 703.255-5810. We are here for you.
Curious about refinancing your home? Call us at 703.255-5810.