Selecting a Refinancing Option

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When you are overwhelmed with so many choices, it may seem as if there are even more refinance programs than borrowers! Contact us at (301)-938-1655 and we'll help you qualify for the right refinance program for your financial needs. There are some general questions to ask yourself while you review your options.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best option could be a low fixed-rate loan. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Unlike 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 can especially be a good choice. However, an ARM with a low intitial payment may be a wiser way to lower your mortgage payments if you see yourself moving in the next few years.

Refinancing to Cash Out

Are you planning to cash out some of your home equity with your refinance? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. So you'll need to get a loan for more than the balance remaining on your existing mortgage loan.With this goal, you'll want However, if your loan interest rate is high now and you've held it for a long time, you may be able to reach your goals without an increase in your mortgage payment.

Consolidating Debt

Maybe you want to pull out some of the equity in your home (cash out) to put toward other debt. If you have the home equity to make it work, paying off other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars monthly.

Building up Equity Faster

Are you hoping to fatten your equity faster, and get your mortgage paid off more quickly? Then, you'll need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Your payments will likely be higher than with the longer term mortgage, but the pay-off is: you will pay considerably less interest and will build up equity more quickly. But, you might be able to switch without a higher monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low. You could even make it lower! To help you understand your options and the many benefits of refinancing, please call us at (301)-938-1655. We are here for you.

Curious about refinancing your home? Call us: (301)-938-1655.