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Refinancing your mortgage loan doesn’t have to be a stressful process. In fact, it can be a highly beneficial move for your financial stability. When you find the best deals and maximize your savings, you’ll be able to save up for your dream vacation, new car, or other experience or item you want. Here are some tips for saving money by refinancing your mortgage.
When you’re looking at refinancing your mortgage, make sure to shop around for the best deals and the cheapest closing costs. Don’t just settle for the first loan option that you find unless you’re sure that you won’t find better. There are always competitive deals out there and you can take advantage of the competition to find the best home mortgage loans in Fairfax, VA. Look into the following important factors with each loan option available to you so that you can lower your monthly payments.
Interest rates for mortgage loans are always fluctuating. When the rates are low, you’ll see quite a few people refinancing and you might want to be one of those people as well. Your interest rate is a big factor in the monthly cost of your loan. Depending on the size of your loan, even half a percent can make a huge difference. Refinancing at a lower interest rate can save you a significant amount of money each month, and that amount will add up rapidly.
Just like everywhere in the United States, mortgage loans for homes in Fairfax, VA, can come with something called mortgage insurance. If you purchased your home with less than a 20% down payment, you’ll have mortgage insurance tacked onto your monthly costs. This is a substantial amount of money that you’re spending each month that isn’t going toward your principal or interest payments on your home. Once you’ve hit that 20% mark, it would be in your best interest to refinance and remove that expensive insurance from your monthly payments and put that money back in your pocket.
The previous two factors will help you to save money in the long term. Of course, that’s the goal of refinancing. But, sometimes, you need bigger savings as quickly as possible. Often, you’ll be able to find loan options that give you a grace period. Usually, this will be a month or two where you won’t have to make a mortgage payment. Take advantage of the grace period to save large amounts of money for a good safety net. Another thing that you could do with this grace period is to use the money to pay off some debt so that your monthly savings will be even larger with fewer bills to pay.
When you know how refinancing your mortgage loan can save you money immediately as well as in the long run, you can become more confident in the process. You’ll be able to save money for your dreams or a hefty rainy day fund. Either way, when you find the best refinancing deal, you end up with a brighter future filled with savings.
For more information about refinancing your mortgage loan, call Granite Mortgage, LLC, at (703) 345-1330.