Selecting a Refinancing Loan
Although it seems like it at times, there are not as many loan programs as there are borrowers! Call us at 703.255-5810 and we will help you qualify for the right refinance loan to fit your financial situation. There are some general things to bear in mind while you consider your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan may be a wise choice for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you set that low rate for the life of your loan. A fixed-rate mortgage is especially a wise option if you don't plan to sell your home within the next five years or so. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you'll want to get a loan above the balance remaining of your present mortgage loan.In this case, you want You may not increase your monthly payemnt, however, if you have had your current mortgage for a number of years, and/or your interest rate is high.
Do you hold other debt, maybe with high interest, that you'd like to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars in your budget each month.
Switching to a Shorter Term Loan
Do you want to build up equity more quickly, and have your mortgage paid off sooner? You should consider refinancing with a short-term loan, such as a 15-year mortgage. Although your monthly payment amount will usually be increased, you will be paying less interest; so your equity amount will rise up faster. However, if you have held your existing thirty year mortgage for a long time and the loan balance is somewhat low, you could be do this without increasing your monthly mortgage payment — you might even be able to save! To help you understand 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? Give us a call at 703.255-5810.