Refinancing: Which Loan Program is for You?
There are a huge number of refinancing options available to borrowers. We can help you choose the refinance program that can fit your situation the best. Contact us at (434) 975-5626 to get started. What are your goals for refinancing? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are achieving better payments and an improved rate your main refinance goals? In that case, the best option may be a low fixed-rate loan. Perhaps you are presently in a loan with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you set that low rate for the term of your mortgage. A fixed-rate mortgage is especially a good option if you don't think you'll be moving within the next five years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you want to get a loan higher than the balance remaining of your current mortgage loan.So you want You might not increase your mortgage payemnt, though, if you've had your existing mortgage for a while, and/or your loan interest rate is high.
Maybe you'd like to cash out some of the equity (cash out) to use toward other debt. If you hold any higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the home equity built up to make it work.
Building up Equity More Quickly
Are you dreaming of paying off your loan sooner, while beefing up your home equity faster? Then, you want to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. You will be paying less interest and growing your equity faster, even though your monthly payments will likely be more than you have been paying. On the other hand, if your existing long-term loan has a low remaining balance, and was closed a while ago, you could be able to make the move without paying more each month. To help you understand your options and the multiple benefits of refinancing, please contact us at (434) 975-5626. We are here to help you reach your goals!
Curious about refinancing? Call us at (434) 975-5626.
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