Which Refinancing Option is Best for You?
There are a huge number of refinancing options available to borrowers. Call us at 703-288-0777 and we'll work with you to qualify you for the perfect loan program for your financial situation. What are your goals for your refinance loan? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate 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 term of your mortgage, even if interest rates rise. If you plan to stay in your home for about five more years, a fixed rate loan may be a particulary good fit for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Are you refinancing primarily to pull out some equity for an infusion of cash? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you'll want to find a loan higher than the balance remaining on your present mortgage loan.In that case, you'll need You may not have an increase in your mortgage payemnt, however, if you've had your current loan for a long time, and/or your interest rate is high.
Do you have other debt, maybe with high interest, that you need to consolidate? If you hold any higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough equity.
Building up Equity More Quickly
Are you planning to fatten up your equity faster, and pay your mortgage off more quickly? Consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Although your mortgage payment amount will likely be increased, you can save on interest; so your home equity will rise up faster. On the other hand, if your existing long-term loan has a low remaining balance, and was closed a while ago, you might be able to make the change without paying more each month. To help you determine your options and the multiple benefits in refinancing, please call us at 703-288-0777. We are here to help you reach your goals!
Want to know more about refinancing your home? Give us a call at 703-288-0777.
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