Should I refinance?
In March 2020, the Fed cut rates by .5%, the largest rate cut since 2008! Since then, refinance rates have ebbed and flowed, moving near 50-year lows. The opportunities for homeowners to save money in 2021 are significant, and now is the time to consider refinancing with Monument Home Loans. Whether you are looking to secure a lower rate, take cash out for a renovation or other project, or shorten your term, Monument Home Loans is here to help you secure the best loan for your goals. We are a local, community-based national advisor offering a range of options to homeowners in Virginia and beyond, and we're committed to helping you work through your unique financial landscape to find the right loan and help you maximize your savings.
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Lower your payments
There are a number of ways refinancing can lower your monthly payment. These can include refinancing at a lower interest rate, which is especially true now with rates lower than they've been in nearly 50 years. Refinancing can also save you money on your monthly payment by providing the opportunity to eliminate your mortgage insurance payment. Depending on your situation, there are other possibilities for lowering your monthly mortgage payment, including lengthening the term of your loan. Please contact us today and one of our loan experts will be in touch to help you find the best option for lowering your monthly mortgage payment.
Get cash out
One of the most common refinance options is a cash-out refinance, which lets you take out a new loan for more than your current mortgage balance (up to 80-90% of your home equity) and keep the difference in cash. Common uses of cash-out refinance are to consolidate high-interest debt, fund home improvement projects, or simply make cash available for other needs. A cash-out refinance replaces your current mortgage, and you need to have equity built up to take advantage of this type of loan.
Shorten your term
Refinancing at a shorter term is a strategy for shortening the life of your mortgage while potentially saving yourself tens of thousands of dollars in interest. For example, refinancing a 30-year $230,000 loan to a 15-year fixed rate mortgage at 3.75% would save you about $82,000 over the life of the loan! This on top of the fact that you'll typically be saving even more by refinancing at a lower interest rate. Although a shorter term may mean a higher monthly payment, you'll be paying more towards your principal each month and therefore building up home equity faster than with a longer term loan.
To learn more about refinance rates or to get a free rate quote, get started by answering a few simple questions. One of our loan officers will reach out to help you explore your best loan options and answer any questions you have.
If you’re interested in refinancing a home in Arlington or accross Virginia, I can help you make it happen. Please contact me today or apply online in less than 10 minutes using the secure online application below.