Which Refinancing Program is Best for You?
The number of refinance options available to borrowers can be overwhelming. Contact us at 703-288-0777 and we can match you with the refinance loan program that fits you best. There are some general things to keep in mind as you look at your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the loan, even if interest rates rise. If you are not planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good choice. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower monthly payments.
Are you refinancing primarily to pull out some of your equity for an infusion of cash? It could be you need to pay for home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. In this case, you will want to get a loan higher than the remaining balance on your present mortgage.Then you'll You'll be looking for a loan for a bigger amount than the current balance with your present mortgage loan in that case. You may not increase your monthly payemnt, though, if you have had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Perhaps you'd like to pull out a portion of the equity (cash out) to use toward other debt. If you have enough home equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.
Building up Equity Faster
Are you dreaming of paying your loan off faster, while building up your home equity faster? In that case, you want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and growing your equity more quickly, although your payments will generally be more than they were. However, if you've had your existing 30-year mortgage loan for a long time and the remaining balance is relatively low, you might be able to do this without raising your mortgage payment — it's even possible to save! To help you understand your options and the multiple benefits in refinancing, please call us at 703-288-0777. We will help you reach your goals!
Curious about refinancing? Give us a call: 703-288-0777.
Get a Refinance Quote
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