Refinancing: Which Option is for You?
Even though it may seem like it at times, there aren't as many loan options as there are borrowers! Contact us at 703.255-5810 and we will match you with the refinance loan program that best fits you. What are your reasons for refinancing? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you set that low rate for the term of your loan. This can be especially a good choice if you aren't expecting a move within the next five years or so. However, an ARM with a low intitial payment may be a wiser way to lower your payments if you expect to move in the next few years.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? It could be you want to update your kitchen, pay your child's college tuition bill, or go on a special family vacation. In this case, you'll need to apply for a loan above the balance remaining of your present mortgage loan.In this case, you'll You'll need to qualify for a loan for a bigger amount than the balance remaining of your current home loan in this case. You may not have an increase in your monthly payemnt, though, if you've had your existing mortgage loan for a while, and/or your loan interest rate is high.
Do you hold other debt, perhaps with higher interest, that you want to consolidate? If you own some higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Building up Equity Faster
Are you dreaming of paying your loan off more quickly, while building up your home equity faster? If this is your hope, your refinance can change you to a mortgage loan program with a shorter term, like a 15 year loan. Although your monthly payment amount will usually be increased, you can save on interest; so your home equity will build up faster. But, you might be able to switch without a bigger monthly payment if your longer term mortgage was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you determine your options and the numerous benefits of refinancing, please call us at 703.255-5810. We can help you reach your goals!
Curious about refinancing your home? Call us: 703.255-5810.