Which Refinancing Loan Program is Best for You?
There are a huge number of refinancing options available to borrowers. We can guide you to find the refinance loan program that can fit your situation the best. Call us at 703.255-5810 to get started. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan might be a wise option for you. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage, even if interest rates rise. This kind of loan is especially a good choice if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to lower your payments if you expect to move in the next few years.
Is "cashing out" your main purpose for your refinance? Your house needs improvements; your son has gone to University and needs tuition money; or you have a special family vacation planned. With this in mind, you will need to get a loan above the balance remaining on your current mortgage.Then you'll want However, if your mortgage rate is currently high and you've had it for quite a few years, you may be able to reach your goals without a rise in your mortgage payment.
Do you want to cash out a portion of your equity to consolidate additional debt? Good plan! If you have the equity in your home to make it work, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Building up Equity More Quickly
Do you hope to build up home equity more quickly, and pay off your mortgage sooner? Consider refinancing with a short-term loan, like a 15-year mortgage loan. You will be paying less interest and increasing your home equity faster, even though your monthly payments will usually be more than you were paying. Conversely, if your current long-term mortgage has a small balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you understand your options and the numerous benefits in refinancing, please call us at 703.255-5810. We are here for you.
Curious about refinancing? Give us a call: 703.255-5810.