Selecting a Refinancing Program

There are not as many loan programs as there are borrowers, but it seems like it at times! We can guide you to choose the refinance loan program that can fit your situation the best. Contact us at 202-625-1491 to get started. What are your goals for your refinance loan? Considering in mind the information below will help you narrow your choices.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good option could be a low fixed-rate loan. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the loan, even when interest rates rise. If you expect to stay in your home for about five more years, a loan with a fixed rate may be a particularly good option for you. However, if you can see yourself moving within the next few years, an ARM mortgage with a small initial rate may be the ideal way to lower your monthly payments. As a result of refinancing, your total finance charges may be higher over the life of the loan.

Cashing Out

Is "cashing out" your main reason for your refinance? Perhaps you want to pay for home improvements, pay your child's college tuition bill, or go on a special family vacation. So you'll want to find a loan above the balance remaining of your current mortgage.Then you want to need to get a loan for a higher number than the remaining balance on your present mortgage. You may not increase your monthly payment, however, if you've had your existing loan for a long time, and/or your loan interest rate is high.

Debt Consolidation

Do you hold other debt, maybe with a high interest rate, that you want to consolidate? If you hold some higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.

Switching to a Shorter Term Loan

Do you want to build up equity quicker, and pay off your mortgage more quickly? Then, you'll need to look into refinancing to a short term mortgage - like a fifteen-year loan. Even though your monthly payment amount will likely be more, you will be paying less interest; so your equity will build up faster. However, if you have had your existing 30 year mortgage loan for a long time and the remaining balance is rather low, you might be do this without increasing your monthly payment — you might even be able to save! To help you figure out your options and the numerous benefits in refinancing, please call us at 202-625-1491. We are here to help you reach your goals!