Which Refinancing Program is Best for You?
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When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! Contact us at 540-433-6611 and we'll work with you to qualify you for the right refinance loan program to fit your financial situation. There are some general questions to ask yourself while you look at the options.
Reducing Your Monthly Payments
Are achieving reduced mortgage payments and a better rate your main refinance goals? If so, the best option could be a low fixed-rate loan. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you are expecting to stay in your home for about five more years, a fixed rate mortgage may be a particularly good option for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Are you hoping to cash out some of your equity with your refinance? Your house needs renovating; your daughter has been accepted to college and needs tuition; or you are taking your family on a cruise. With this in mind, you will want to look for a loan above the remaining balance of your present mortgage.With this goal, you will want to need to qualify for a loan for a bigger number than the balance remaining on your current mortgage loan. You may not have an increase in your monthly payment, though, if you have had your current mortgage for a long time, and/or your interest rate is high.
Do you want to cash out some of your home equity to consolidate additional debt? Excellent idea! If you have the home equity to make it work, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars in your budget each month.
Building up Equity More Quickly
Are you dreaming of paying off your loan sooner, while building up your equity quicker? Then, you want to look into refinancing to a short term mortgage - like a fifteen-year loan. Your mortgage payments will likely be more than with a long-term loan, but in exchange, that you will pay quite a bit less interest and will build up equity quicker. However, if you have held your current 30 year mortgage loan for a long time and the remaining balance is somewhat low, you could be able to do this without increasing your monthly payment — you might even be able to save! To help you figure out your options and the multiple benefits in refinancing, please call us at 540-433-6611. We will help you reach your goals!
Curious about refinancing your home? Call us at 540-433-6611.