Which Refinancing Program is Best for You?
Even though it seems like it sometimes, there are not as many loan options as there are applicants! Call us at 804-768-9519 and we'll work with you to qualify you for the right loan program to fit your situation. There are some general questions to ask yourself as you review the options.
Making Your Payments Lower
Are getting reduced mortgage payments and a better rate your main refinance goals? In that case, a low, fixed rate loan may be the best choice for you. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage, even as interest rates rise. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can particularly be a great option. On the other hand, if you do see yourself moving within the next few years, an adjustable rate mortgage with a low initial rate may be the ideal way to reduce your monthly payment.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Your home needs new carpet; your son has gone to college and needs tuition; or you are taking your family on a cruise. Then you want to get a loan for more than the balance remaining on your current mortgage.With this goal, you will need However, if your mortgage rate is currently high and you have held it for a long time, you could be able to achieve your goals without making your mortgage payments increase.
Do you want to pull out some home equity to consolidate other debt? Great plan! If you have the equity in your home to make it work, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Building up Equity Faster
Are you dreaming of paying off your loan more quickly, while building up your equity faster? In that case, you want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and increasing your home equity faster, even though your payments will usually be higher than you have been paying. Conversely, if your existing longer term loan has a low remaining balance, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you figure out your options and the many benefits of refinancing, please call us at 804-768-9519. We are here for you.