Virginia Mortgage Loans

Posted by  on Aug 05, 2010
If you are thinking about Virginia refinancing and Virginia mortgage rates, there are a few things to take into consideration. It's important to consider what mortgage rates are doing. Virginia mortgage rates are changing with the times and therefore, before looking into mortgage, it is important to keep up with what is going on. Since mid-2004, the Federal Reserve has raised interest rates several times and is expected to keep raising rates in the near future. This means that if you have an adjustable rate mortgage (ARM), it may adjust to a rate that's higher than a fixed-rate mortgage. Now might be a good time to consider refinancing to a fixed-rate loan.

However, you must also consider the amount of time you plan on being in your home. If you're only going to be in your home for a few more years, it may make sense not to refinance out of your ARM. If you're going to be in your home longer than seven years, it might be a smart move to refinance to a fixed-rate mortgage.

Keep in mind that you need to consider how long you plan on being in your home. Many people move within nine years so it may not make sense to pay a higher Virginia interest rate for a 30-year fixed-rate mortgage when you're not going to be in the home that long. Doing so may be costing you money.

Consider refinancing to an ARM instead, you will get a lower rate and lower your monthly mortgage payment. A drop of just one half to three quarters of a percentage point in interest can lower your monthly payment. If you do not refinance, you may be paying too much every month for your loan, and that's never a good financial move. There are a few different ways you can lower your monthly mortgage payment. Keep in mind that a lower rate generally means a lower monthly payment.

The difference between credit card debt and a mortgage can, financially speaking, mean thousands of dollars. Unlike your mortgage, the interest you pay on a credit card is not tax-deductible and you pay a higher rate than you would on your mortgage. Using your home equity to pay off your high-interest credit card debt can save you money in the long run. Using your home equity, rather than your credit cards, to finance expensive purchases can also be a smart move.

Be sure to consult your tax advisor. There are times when it makes sense to refinance your mortgage. It is important to have a clear financial objective in mind so that you're more able to choose the most appropriate loan.

Remember that the decision is up to you to decide when it's best for you to refinance, based on your individual financial situation.
You can also change the term of your mortgage. For example, if you have a 15-year mortgage, you can lengthen the term to thirty years. Since the balance of your mortgage is spread out over a longer period of time, your payment is lower. However, if you have a 30-year mortgage and one of your financial goals is long-term savings, you may want to consider shortening your Virginia loan term to twenty years.

Your payment will be higher, but you will pay much less in interest over the life of the loan, saving you thousands of dollars in the long run. The third way to lower your payment is to refinance to an interest-only loan.

With an interest-only loan, the minimum amount you are required to pay is the amount of interest for a certain period of time, though you can pay as much principal as you like. But you get the flexibility to pay less if you need or want to divert your money elsewhere, such as contributing to your 401k or saving for your child's college tuition.


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