Which Refinancing Loan Program is Right for You?
Even though it may seem like it at times, there aren't as many refinance choices as there are borrowers! Call us at 703-288-0777 and we can match you with the refinance program that is ideal for you. In order to review your choices, you'll need to consider what you want to achieve with your refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even as interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a fixed-rate loan may be an especially good fit for you. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity in your refinance? Maybe you want to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. So you'll want to get a loan for more than the balance remaining on your present mortgage.With this goal, you will need You may not increase your monthly payemnt, though, if you've had your existing mortgage for a while, and/or your interest rate is high.
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars monthly.
Paying it off Faster
Are you dreaming of paying off your loan sooner, while beefing up your equity more quickly? In that case, you need to find out about refinancing to a short term mortgage loan - like a fifteen-year loan. Your mortgage payments will likely be more than with the longer term mortgage, but in exchange, you will pay substantially less interest and can build up equity more quickly. However, if you've had your existing thirty year mortgage loan for a number of years and the remaining balance is somewhat low, you might be able to do this without increasing your mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits in refinancing, please contact us at 703-288-0777. We are here for you.
Want to know more about refinancing? Give us a call at 703-288-0777.