Refinancing: Which Program is for You?
There aren't as many loan program choices as there are borrowers, but at times it feels like it! Contact us at 703-288-0777 and we can match you with the loan program that is ideal for you. In order to review your options, you'll need to think about what you want to achieve with your refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage, even as interest rates rise. A fixed-rate mortgage can be particularly a wise option if you aren't expecting a move within the next 5 years or so. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced payments.
Is "cashing out" your primary reason for refinancing? It could be you want to make home improvements, take care of your college kid's tuition, or go on a dream vacation. In this case, you will need to get a loan for more than the remaining balance of your current mortgage loan.With this goal, you want to need to get a loan for a higher amount than the remaining balance on your present mortgage loan. If you've had your current mortgage for a number of years and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment higher.
Consolidating Your Debt
Do you want to cash out some home equity to consolidate additional debt? Great idea! If you have a fair amount of home equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) could help save you a chunk of cash each month.
Paying it off Faster
Are you dreaming of paying off your loan sooner, while beefing up your equity faster? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will generally be bigger than you were paying. Conversely, if your existing longer term loan has a small balance remaining, and was closed a while ago, you may be able to make the move without paying more each month. To help you figure out your options and the many benefits in refinancing, please call us at 703-288-0777. We will help you reach your goals!
Curious about refinancing your home? Give us a call: 703-288-0777.
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