Selecting a Refinancing Program
When you are overwhelmed with all the options, it may seem like there are even more loan programs than borrowers! We can guide you to find the refinance loan program that will fit your situation the best. Contact us at 703-288-0777 to get started. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are getting reduced monthly payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the interest rate varies. Even if interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. This kind of loan can be especially a wise idea if you don't think you will move within the next 5 years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Is your refinance goal mainly to pull out some home equity for an infusion of cash? It could be you want to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. So you will want to qualify for a loan higher than the remaining balance on your existing mortgage loan.In that case, you will want to need to get a loan program for a higher amount than the balance remaining on your present mortgage loan. If you've had your existing mortgage loan for a long time and/or have a loan whose interest rate is high, you may be able to do this without increasing your monthly payment.
Maybe you hope to pull out some equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save several hundred dollars in your monthly budget.
Paying it off Faster
Are you planning to fatten your equity faster, and get your mortgage paid off more quickly? In that case, you'll need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage loan. The mortgage payments will likely be more than with your longer term mortgage loan, but in exchange, that you will pay substantially less interest and can build up equity more quickly. But, you could be able to make the change without much increase in your monthly mortgage payment if your long term mortgage loan was closed a while ago, and the balance remaining is small. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at 703-288-0777. We are here for you.
Curious about refinancing your home? Give us a call: 703-288-0777.
Get a Refinance Quote
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