Which Refinancing Option is Best for You?
There are a huge number of refinancing programs available to borrowers. Contact us at 703-288-0777 and we will match you with the refinance program that fits you best. In order to review your options, you should determine what you want to achieve with the refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a good option might be a low fixed-rate loan. Maybe you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even if interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. This is particularly a wise idea if you aren't planning a move within the next 5 years or so. However, an ARM with a initial low payment may be a wiser way to lower your payments if you plan on moving within the near future.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. With this in mind, you'll want to get a loan for more than the balance remaining on your current mortgage loan.So you will You will be looking for a loan for a higher amount than the balance remaining on your current mortgage loan in that case. You might not have an increase in your monthly payemnt, though, if you've had your current loan for a while, and/or your loan interest rate is high.
Do you want to cash out some of your home equity to consolidate other debt? Yes you can! If you have built up some home equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could be able to save you a lot of cash each month.
Switching to a Shorter Term Loan
Do you want to build up equity quicker, and pay off your mortgage more quickly? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your home equity faster, although your payments will likely be higher than they were. But, you may be able to make the change without a bigger monthly payment if your long term mortgage was closed a while ago, and the remaining balance is somewhat low. You could even make it lower! To help you determine your options and the many benefits in refinancing, please contact us at 703-288-0777. We are here for you.
Curious about refinancing? Call us: 703-288-0777.
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