Refinancing: Which Program is for You?
There are a huge number of refinancing programs available to borrowers. We can help you choose the refinance program that will fit your financial situation the best. Contact us at 703.255-5810 to begin the process. There are several questions to ask yourself while you consider the options.
Making Your Payments Lower
Are getting reduced mortgage payments and a lower rate your main refinance goals? In that case, applying for a low, fixed-rate loan might be a good option for you. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Even when rates come up later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low interest rate for the term of your mortgage. If you plan to stay in your home for about five more years, a loan with a fixed rate may be an especially good choice for you. However, an ARM with a low intitial payment may be a smarter way to lower your monthly payments if you plan on moving in the next few years.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Your house needs new carpet; your daughter has gone to University and needs tuition; or you are taking your family on a cruise. So you will need to look for a loan above the remaining balance on your present mortgage.So you'll You'll be looking for a loan for a higher amount than the current balance on your present mortgage in that case. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Do you hold other debt, perhaps with higher interest, that you'd like to consolidate? If you have built up some equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a chunk of cash each month.
Switching to a Shorter Term Loan
Do you want to build up home equity quicker, and pay off your mortgage faster? If this is your plan, the refinance mortgage can change you to a mortgage program with a short, like a 15 year loan. You will be paying less interest and growing your equity faster, even though your mortgage payments will generally be more than they were. But, you could be able to switch without a higher monthly payment if your long term loan was closed a while ago, and the balance remaining is somewhat low. You may even pay less! To help you figure out your options and the numerous benefits in refinancing, please contact us at 703.255-5810. We can help you reach your goals!
Want to know more about refinancing? Call us at 703.255-5810.