Refinancing: Which Option is for You?
There are an enormous number of refinancing options available to borrowers. Call us at (434) 975-5626 and we can match you with the refinance program that fits you best. There are some general questions to ask yourself as you consider the choices.
Lowering Your Payments
Are getting reduced mortgage payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be your best option. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — with which the interest rate varies. Even when rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low interest rate for the term of your mortgage. This can be especially a good choice if you don't think you'll be selling your home within the next 5 years or so. On the other hand, if you can see yourself moving in the near future, an ARM mortgage with a low initial rate could be the best way to bring down your monthly payments.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? Your house needs new carpet; your daughter has gone to University and needs tuition; or you have a special family vacation planned. Then you will need to find a loan for more than the balance remaining on your present mortgage.With this goal, you will want to need to find a loan for a higher number than the balance remaining on your existing mortgage loan. If you've had your current mortgage for quite a while and/or have a mortgage loan whose interest rate is high, you might\could be able to do this without increasing your monthly payment.
Perhaps you want to pull out some of the home equity (cash out) to use toward other debt. If you own some higher interest debts (like credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Building up Equity Faster
Are you dreaming of paying off your loan more quickly, while building up your equity more quickly? You should consider refinancing to a short-term loan, like a 15-year mortgage. Your monthly payments will likely be higher than they were with your long-term loan, but in exchange, you will pay considerably less interest and will build up equity quicker. But, you may be able to switch without much increase in your monthly mortgage payment if your long term loan was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you determine your options and the numerous benefits in refinancing, please call us at (434) 975-5626. We are here for you.
Want to know more about refinancing? Call us at (434) 975-5626.
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