Refinancing: Which Option is for You?
Although it seems like it at times, there aren't as many loan programs as there are borrowers! We can guide you to find the loan program that can fit your situation the best. Call us at (434) 975-5626 to get started. surveying your choices, you can determine your goals for your refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan may be a wise choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a loan with which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even when interest rates rise. A fixed-rate mortgage is especially a wise idea if you aren't planning a move within the next five years or so. On the other hand, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate could be the best way to lower your monthly payment.
Refinancing to Cash Out
Are you wanting to cash out some of your equity with your refinance? Maybe you want to make home improvements, pay your child's college tuition bill, or go on a dream vacation. Then you'll need to find a loan higher than the balance remaining of your present mortgage loan.So you You'll be looking for a loan for more than the remaining balance with your current mortgage in that case. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Maybe you hope to pull out some of the equity in your home (cash out) to put toward other debt. If you have the equity in your home for it, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars in your budget each month.
Building up Equity More Quickly
Are you dreaming of paying off your loan faster, while building up your home equity more quickly? In that case, you'll need to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. The monthly payments will probably be higher than they were with the long-term loan, but in exchange, that you will pay considerably less interest and will build up equity more quickly. However, if you have held your current thirty-year loan for a number of years and the remaining balance is rather low, you might 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 contact us at (434) 975-5626. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at (434) 975-5626.
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