5 Reasons to Refinance Your Fairfax County Virginia Real Estate
Once upon a time, people refinanced their homes only because interest rates dropped and they could lower their monthly payments. Today, more and more people are managing their homes’ equity and using it to finance projects and consolidate debt. Here are 5 popular reasons to refinance your Fairfax County Virginia real estate.
- Lower monthly payments or the length of your loan. A lower interest rate means a lower monthly payment. If interest rates drop below your current interest rate, you may want to consider refinancing for the better rate. If you are comfortable with your current monthly payment, you may also want to consider refinancing for a shorter term. Your payment can stay close to what it is now and you will have your Fairfax County Virginia real estate paid off sooner.
- Consolidate debt. If you plan to stay in your home for a long time or if your home has built enough equity, you can refinance for an amount larger than you currently owe. With the extra cash you can pay off other debt like consumer credit cards and vehicle loans.
- Home renovations. If you’ve outgrown your current home but hate to leave your neighborhood, consider adding on to your home instead of buying a new one. You may want to refinance your home and take out cash to complete your renovations.
- Stop paying private mortgage insurance. Your bank may have required you to get private mortgage insurance (PMI). This insurance protects the lender if you default on your loan, and it is rather expensive. If you have enough equity in your home and no longer have to pay PMI, it may be a good time to refinance. This will lower your monthly payment.
- Switch to a different type of loan. If you currently have an adjustable rate mortgage and the interest rates are going up, consider refinancing to a fixed rate loan. This loan is more secure and you know what your payments will be for the life of the loan. You can also refinance from a fixed rate mortgage to an interest only or adjustable rate mortgage, if you need lower monthly payments.
Your home is your most valuable asset. If you’re thinking of selling your home, I can help you get the most money in the least amount of time. Call me today at 703-909-3939 or drop me an email at Steve@HomeSearchWebsite.com.
Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939
