Choosing a Refinancing Program
Although it seems like it sometimes, there aren't as many loan options as there are borrowers! We can help you find the refinance program that can fit your situation the best. Contact us at 804-768-9519 to get started. What are your goals for refinancing? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a wise option for you. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage in 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 fixed-rate mortgage, you lock in the low interest rate for the life of your loan. This is especially a wise option if you don't plan to move within the next five years or so. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower monthly payments.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? It could be you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. So you'll want to find a loan for more than the balance remaining of your present mortgage.With this goal, you'll want You may not have an increase in your mortgage payemnt, however, if you've had your existing loan for a number of years, and/or your interest rate is high.
Do you want to cash out a portion of your equity to consolidate other debt? Excellent idea! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars in your monthly budget.
Building up Equity More Quickly
Do you plan to build up home equity more quickly, and have your mortgage paid off more quickly? You should consider refinancing to a short-term loan, such as a 15-year mortgage. The mortgage payments will likely be higher than with your longer term loan, but the pay-off is: you will pay considerably less interest and can build up equity quicker. On the other hand, if your existing long-term mortgage has a low balance remaining, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you determine your options and the multiple benefits of refinancing, please contact us at 804-768-9519. We would love to help you reach your goals!