Guide to Refinance, Mortgage,
& Home Equity Loans in
Washington, Washington DC (DC)

If you like a fast-paced lifestyle and are interested in politics and government, Washington, D.C. might be the perfect place for you to live. The metropolitan areas of Washington, D.C. also include cities in both Virginia and Maryland, so you do not have to live within the city to have full access to its benefits. In Washington, D.C. you can take the metro almost anywhere you wish to go, and you can see sites like the Washington monument, the Smithsonian Institute, and the Vietnam Memorial for free. Because touring in our nation’s capital is so inexpensive, the city has many visitors every year. And if you have enjoyed your time there during a vacation, moving to Washington, D.C. might be the right thing for you.

• Jumbo Loans: Because homes in Washington, D.C. are expensive, there is a good chance that you will need a jumbo loan to pay for it. Jumbo loan companies exist because nation-wide lenders, like Fannie Mae and Freddie Mac have a set mortgage loan amount that they will not exceed, which is usually slightly higher than the national average for mortgages. With a jumbo loan, there is more risk involved for the lender, so your interest rate will be higher, but if you have decent credit, it should not be hard to qualify for a jumbo loan.

• Fixed Rate/Adjustable Rate: With any mortgage comes an interest rate. There are two main choices for interest rates, no matter what kind of loan you receive: fixed rate and adjustable rate. Most loans start with an adjustable rate interest rate. This means that you are quoted a number of percentages above the national average that your loan’s interest rate will be. When the national average changes, your interest rate does as well. If you plan to live in your Washington, D.C. home for a long time, it is probably in your best interest to refinance. When you refinance, you can fix your interest rate. Most people who refinance successfully watch the real estate market carefully and refinance when the national interest rate is fairly low. Remember, when you refinance, you have to pay closing costs, but if you can afford these up front, it is a good idea to refinance at a fixed interest rate.

• Home Equity Loans and Lines of Credit: Mortgages that are re-borrowed often take the forms of home equity loans and home equity lines of credit. This is a mortgage option if you are already living in Washington, D.C. and want to make the most of your assets. Home equity loans and home equity lines of credit cash in on your home’s equity, which is basically how much of the home you own outright because you have repaid the first mortgage. For example, if your home’s total market value is $500,000 and you have $200,000 left to pay on your first mortgage, your home’s equity is $300,000. Home equity loans and lines of credit allow you to re-borrow a certain percentage of that—usually 80% if your credit is good. Home equity loans come in lump sums, while home equity lines of credit work more like a credit card.

Of course, there are other varieties of mortgage loans that may work well for your Washington, D.C. mortgage. You could try a balloon loan repayment schedule if you are going to be coming into some money or an interest-only repayment schedule if you expect to get a large pay raise soon. Remember to look at all of your options, including jumbo loans, refinance interest rates, home equity loans, and home equity lines of credit. If you want to find out more, fill out the easy form below, and one of our mortgage professionals will contact you to discuss all of your options and answer all of your questions about moving to Washington, D.C.