Selecting a Refinancing Loan
There are a huge number of refinancing options available to borrowers. Contact us at 703-288-0777 and we can match you with the loan program that fits you best. What are your goals for refinancing? Keeping in mind the following will help you begin your decision process.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then the best choice may be a low fixed-rate loan. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low interest rate for the term of your loan. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can particularly be a good option. On the other hand, if you do see yourself moving before too long, an ARM with a small initial rate may be the best way to lower your monthly payments.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? It could be you need to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. So you need to apply for a loan for more than the remaining balance of your present mortgage.In this case, you want to find a loan program for a higher number than the remaining balance on your present mortgage loan. If you've had your existing mortgage for a number of years and/or have a mortgage loan whose interest rate is high, you may be able to do this without making your monthly payment bigger.
Do you want to pull out some equity to consolidate other debt? Great idea! If you have a fair amount of equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could help save you a lot of money every month.
Getting a Shorter Term Loan
Do you need to build up home equity more quickly, and have your mortgage paid off more quickly? Consider refinancing to a shorterterm loan, often a 15-year mortgage loan. Your payments will likely be higher than with your long-term mortgage, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. Conversely, if your existing longer term mortgage has a small balance remaining, and was closed a number of years ago, you may even be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at 703-288-0777. We are here for you.
Curious about refinancing? Give us a call: 703-288-0777.
Get a Refinance Quote
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