Which Refinancing Option is Right for You?

When you are overwhelmed with all the options, it may seem like there are even more refinance programs than applicants! Call us at (434) 975-5626 and we can match you with the refinance loan program that is best for you. surveying your choices, you will need to list what you want to achieve with your refinance.

Reducing Your Monthly Payments

Are achieving reduced monthly payments and an improved rate your main reasons for refinancing? If so, your best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even if interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise option. However, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate might be the best way to reduce your monthly payments.

Getting Out some Cash

Are you wanting to cash out some of your home equity with your refinance? Your house needs new carpet; your daughter has been accepted to University and needs tuition money; or you are taking your family on a cruise. In this case, you'll need to find a loan higher than the balance remaining on your existing mortgage loan.Then you You will want to qualify for a loan for a bigger amount than the remaining balance with your current home loan in that case. If you've had your current mortgage loan for a number of years and/or have a loan with a high interest rate, you might\could be able to do this without increasing your mortgage payment.

Debt Consolidation

Do you have other debt, maybe with high interest, that you'd like to consolidate? If you have a fair amount of equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a chunk of money each month.

Building up Equity Faster

Do you need to build up equity quicker, and have your mortgage paid off sooner? If this is your goal, the refinance loan can move you to a loan program with a short, such as a 15 year loan. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will likely be bigger than they were. Conversely, if your existing long-term mortgage has a low balance remaining, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please call us at (434) 975-5626. We can help you reach your goals!

Want to know more about refinancing your home? Call us: (434) 975-5626.

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