Which Refinancing Option is Right for You?
There are not as many loan program choices as there are applicants, but it feels like it at times! Contact us at 703.255-5810 and we can work with you to qualify you for the right loan program for your financial needs. What are your goals for your refinance loan? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are achieving reduced monthly payments and a lower rate your main reasons for refinancing? If so, your best choice may be a low fixed-rate loan. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the mortgage, even as interest rates rise. This kind of loan is particularly a good idea if you don't think you will sell your home within the next five years or so. However, an ARM with a initial low payment may be a better way to reduce your mortgage payments if you expect to move in the next few years.
Are you hoping to cash out some of your home equity in your refinance? It could be you want to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. In this case, you will want to find a loan higher than the balance remaining of your existing mortgage.So you want If you've had your current mortgage loan for quite a while and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your mortgage payment.
Do you hold other debt, perhaps with high interest, that you'd like to consolidate? If you have built up some equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could help save you a chunk of cash every month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while beefing up your home equity quicker? If this is your hope, your refinance can switch you to a mortgage loan program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your equity faster, even though your monthly payments will generally be higher than they were. But, you could be able to make the change without a bigger monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You could even pay less! To help you understand 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: 703.255-5810.