If you are like many Virginia Beach VA property owners, you’ve most likely considered refinancing your current mortgage to take advantage of low interest rates. Before you decide if refinancing is right for you and your family, it’s recommended you consider the different options and the pros and cons of a refinance.
The Pros of Refinancing Your Virginia Beach VA Home
Many homeowners wish to change from their current ARM (Adjustable Rate Mortgage) Loan to a Fixed-Rate Loan to avoid the adjustment of a future higher rate. If you currently have an ARM, a refinancing to a Fixed-Rate Loan will offer a more predictable monthly mortgage. The security of a fixed rate may come at the cost of a slightly higher interest rate.
No cost refinance options do exist and can be a great option for those that do not intend to own their home for a long period of time. In exchange for a rate that is slightly higher than the prevailing rate the lender will subsidize most if not all of your closing costs.
If your current mortgage is already a Fixed-Rate Loan, then, capitalizing on today’s low interest rates will also offer the benefits of having a lower monthly mortgage payment.
The Cons of Refinancing Your Virginia Beach VA Mortgage
Just as when you first secured your current loan, refinancing it will include loan closing costs. Crunch the numbers to see if the cost associated with refinancing your mortgage will be greater than the amount you save over a specific amount of time. If you aren’t sure how long you will be in your current property, then refinancing may not be in your best interest; however, if you plan to be in your home for a number of years, then, in most cases, the cost of refinancing will save you a great amount of money, which you can invest in other areas of your financing portfolio.
If you’d like to determine how a refinance of your home would affect you, contact me today.
Pat Bowler | Market Leader & Mortgage Consultant
575 Lynnhaven Parkway Suite 101 | Virginia Beach VA 23452 | 757-652-3999
Movement Mortgage, LLC is an Equal Housing Lender. NMLS # 39179 | 877-314-1499. Movement Mortgage, LLC is licensed by the “Virginia Bureau of Financial Institutions” Lic # MC-5112. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. “Movement Mortgage” is a registered trademark of the Movement Mortgage, LLC, a Delaware limited liability company.
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