Refinancing: Which Loan Program is for You?
Although it seems like it sometimes, there aren't as many refinance choices as there are applicants! Contact us at 703-288-0777 and we can help you qualify for the perfect refinance loan program for your financial needs. What are your reasons for refinancing? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your loan, even when interest rates rise. This kind of loan is especially a wise choice if you aren't expecting a move within the next five years or so. However, an ARM with a initial low payment may be a smarter way to reduce your monthly payments if you see yourself moving in the next few years.
Getting Out some Cash
Are you planning to cash out some of your equity in your refinance? Perhaps you need to make home improvements, pay your child's college tuition bill, or take your dream vacation. With this in mind, you need to find a loan above the balance remaining of your present mortgage loan.So you'll need You might not increase your mortgage payemnt, though, if you have had your current loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Maybe you hope to pull out some equity in your home (cash out) to put toward other debt. If you own any higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have enough home equity.
Building up Equity More Quickly
Are you dreaming of paying your loan off faster, while building up your equity more quickly? If this is your hope, your refinance loan can move you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, although your payments will usually be higher than you have been paying. However, if you have had your existing thirty-year mortgage loan for a long time and the remaining balance is relatively low, you may be do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please contact us at 703-288-0777. We are here for you.
Curious about refinancing your home? Give us a call at 703-288-0777.
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