Selecting a Refinancing Option
Are you looking for a mortgage? We'd be thrilled to talk about our many mortgage solutions! Call us at (301) 773-9811. Ready to get started? Apply Now
The huge number of refinance options available to borrowers can be overwhelming. Contact us at (301) 773-9811 and we will help you qualify for the perfect refinance loan program to fit your needs. There are several things to keep in mind while you look at the options.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a great loan option. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get lower monthly payments.
Are you planning to cash out some of your equity with your refinance? Your home needs new carpet; your daughter has gone to University and needs tuition; or you have a special family vacation planned. So you will need to get a loan above the balance remaining of your existing mortgage loan.So you'll need However, if your loan interest rate is high now and you've had it for a long time, you may be able to achieve your goals without making your mortgage payments bigger.
Consolidating Your Debt
Perhaps you want to cash out some equity in your home (cash out) to use toward other debt. If you have the home equity to make it work, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your monthly budget.
Switching to a Shorter Term Loan
Do you plan to build up equity quicker, and pay off your mortgage faster? If this is your goal, your refinance loan can change you to a loan program with a shorter term, such as a 15 year loan. Even though your mortgage payments will probably be increased, you can save on interest; so your equity amount will rise up faster. Conversely, if your current longer term mortgage loan has a small balance remaining, and was closed a number of years ago, you may be able to make the switch without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at (301) 773-9811. We are here for you.
Curious about refinancing? Call us at (301) 773-9811.