Which Refinancing Program is Best for You?
When you are overwhelmed with all the options, it may seem as if there are even more refinance loan programs than applicants! Contact us at 703.255-5810 and we'll help you qualify for the right refinance loan to fit your needs. In the interest of looking at your options, you'll need to consider your goals for the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage loan, even if interest rates rise. If you expect to live in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get lower payments.
Getting Out some Cash
Are you wanting to cash out some of your home equity in your refinance? It could be you want to make home improvements, take care of your college kid's tuition, or go on a special family vacation. Then you'll need to find a loan for more than the remaining balance of your current mortgage loan.Then you will You will be looking for a loan for a higher amount than the balance remaining on your existing mortgage in this case. You may not have an increase in your monthly payemnt, though, if you've had your current mortgage loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Perhaps you want to cash out some of the home equity (cash out) to put toward other debt. If you have enough equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) could help save you a lot of cash each month.
Paying it off Sooner
Are you dreaming of paying off your loan more quickly, while building up your home equity faster? If this is your goal, your refinance loan can switch you to a loan program with a short, such as a 15 year loan. Even though your monthly payments will probably be more, you can save on interest; so your equity will rise up faster. On the other hand, if your current longer term loan has a low balance remaining, and was closed a while ago, you could be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please call us at 703.255-5810. We are here for you.
Want to know more about refinancing? Call us: 703.255-5810.