Refinancing: Which Loan Program is for You?
The number of refinance options available is truly breathtaking. We can guide you to select the refinance program that can fit your needs the best. Call us at (434) 975-5626 to begin the process. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a wise choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the mortgage, even if interest rates rise. If you expect to live in your home for about five more years, a fixed rate loan may be an especially good choice for you. However, an ARM with a low intitial payment could be a better way to reduce your mortgage payments if you expect to move within the near future.
Is "cashing out" your primary purpose for your refinance? Your home needs renovating; your daughter has gone to University and needs tuition; or you have a special family vacation planned. In this case, you need to get a loan for more than the remaining balance on your current mortgage loan.With this goal, you'll want to qualify for a loan program for a higher amount than the remaining balance on your present mortgage. You might not increase your mortgage payemnt, though, if you have had your existing mortgage loan for a while, and/or your loan interest rate is high.
Do you want to pull out a portion of your equity to consolidate additional debt? Yes you can! If you have built up some equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could help save you a chunk of cash each month.
Switching to a Shorter Term Loan
Are you planning to fatten your home equity faster, and pay your mortgage loan off more quickly? Consider refinancing to a shorterterm loan, like a 15-year mortgage. Even though your mortgage payment amount will likely be increased, you will be paying less interest; so your home equity will build up faster. But, you could be able to make the change without much increase in your monthly payment if your long term loan was closed a while back, and the balance remaining is somewhat low. You may even make it lower! To help you understand your options and the numerous benefits of refinancing, please contact us at (434) 975-5626. We are here for you.
Want to know more about refinancing your home? Give us a call at (434) 975-5626.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.