Selecting a Refinancing Option
There are a huge number of refinancing options available to borrowers. Contact us at (434) 975-5626 and we will match you with the loan program that best fits you. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, the best option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the loan, even if interest rates rise. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a good option. However, an ARM with a low intitial payment could be a better way to reduce your payments if you see yourself moving in the near future.
Are you planning to cash out some of your home equity in your refinance? Maybe you need to pay for home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you'll need to get a loan for more than the remaining balance of your existing mortgage.So you want However, if your mortgage rate is high now and you've held it for quite a few years, you could be able to achieve your goals without making your mortgage payments rise.
Perhaps you hope to cash out some of the equity in your home (cash out) to use toward other debt. If you own some higher interest debts (such as credit cards or car loans), you may 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.
Getting a Shorter Term Loan
Are you planning to fatten up your equity faster, and pay off your mortgage loan more quickly? You should consider refinancing to a short-term loan, such as a 15-year mortgage loan. Although your monthly payments will usually be increased, you can be paying less interest; so your equity amount will build up faster. However, if you have held your existing 30-year loan for a long time and the loan balance is somewhat low, you could be do this without increasing your monthly payment — it's even possible to save! To help you determine your options and the many benefits of refinancing, please call 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.
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