Selecting a Refinancing Option
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than applicants! Contact us at 703-288-0777 and we will match you with the refinance program that is best for your needs. There are some general things to keep in mind while you review your options.
Reducing Your Monthly Payments
Are achieving better monthly payments and an improved rate your main refinance goals? If so, applying for a low, fixed-rate loan might be a wise choice for you. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even as interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for at least five more years, a fixed rate loan may be an especially good option for you. However, if you can see yourself moving in the near future, an ARM with a small initial rate could be the ideal way to lower your monthly payment.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are planning some home improvements. So you'll need to look for a loan for more than the balance remaining on your present mortgage loan.Then you want You may not increase your monthly payemnt, though, if you've had your existing loan for a long time, and/or your interest rate is high.
Perhaps you'd like to cash out some of the equity (cash out) to put toward other debt. If you have some debt with steep interest (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Are you hoping to fatten your home equity faster, and pay off your mortgage more quickly? Consider refinancing to a short-term loan, like a 15-year mortgage loan. The mortgage payments will probably be higher than with the longer term mortgage loan, but the pay-off is: you will pay considerably less interest and can build up equity quicker. But, you might be able to switch without much increase in your monthly payment if your longer term mortgage loan was closed a while back, and the balance remaining is low. You may even make it lower! To help you figure out your options and the multiple benefits of refinancing, please call us at 703-288-0777. We can help you reach your goals!
Curious about refinancing your home? Call us: 703-288-0777.
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