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Welcome!
Chrysler
Home Mortgage Corporation
1524 VOLVO PARKWAY
CHESAPEAKE, VIRGINIA 23320
Call 800-350-8279
Contact
US
Chrysler
Home Mortgage, is the first choice for a Virginia
mortgage. From our home base in Chesapeake Virginia,
we have helped many potential homebuyers, regardless
of their credit situation, obtain the home of their
dreams, at a payment they can afford. We have also helped
many homeowners refinance their existing mortgage and
lower their monthly payments. We offer a wide variety
of mortgage programs. Check out our mortgage calculator
and see how much we could save you. If you want a Virginia
mortgage or just want to know what the current Virginia
mortgage rates are, give us a call at 800-350-8279 |
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Should
I Refinance My Mortgage? |
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| Refinancing isn’t for everyone,
but it’s easy to determine if it’s the right move for
you. The following are some reasons why refinancing
your home mortgage can make sense: |
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Lower
your monthly payments: All other things
being equal, a lower interest rate will mean a
lower monthly payment. For example: you have a
30-year mortgage of $100,000. At a 7% interest
rate, your monthly payment is $665.30. At 6%,
your monthly payment is $599.55. Not only do you
save $65.75 per month, but over the course of
30 years you’ll save $23,670. |
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Decrease your loan
term: The best way to save money on your
mortgage is by borrowing for a shorter term. The
less time it takes you to pay off your loan, the
less money you’ll pay in interest. For instance,
if you have that $100,000 loan at 7% for 30 years,
you’ll pay a total of $239,508. You’ll only pay
$186,072 for the same loan if you finance for
20 years. |
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Get a fixed interest
rate: Many people have adjustable rate
mortgages (also known as ARMs.) An ARM can be
a great financial move in the short term, but
if interest rates rise you could find yourself
with higher monthly payments than you planned.
If interest rates are at a level where you feel
comfortable, refinancing to a fixed-rate loan
will protect you against higher interest rates
down the road. |
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Get cash from your
equity: If your home has risen in value,
or if you have paid down your mortgage over a
number of years, your house may be worth significantly
more than what you currently owe. Most loans will
allow you to borrow up to at least 90% of your
home’s value; some will go as high as 125% (under
certain conditions.) |
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Eliminate PMI:
PMI stands for private mortgage insurance. It
protects the lender against loan defaults. If
you put less than 20% down when you bought your
home, you’re paying PMI. If your home has risen
sufficiently in value, refinancing may allow you
to stop paying PMI. |
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Avoid balloon payments:
Some ARM loans have fixed terms with balloon payments
due at the end of the term. Refinancing before
the end of the loan term will allow you to avoid
the balloon payment. |
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Is Refinancing Right For
Me?
Determining whether refinancing is the right financial
move is simple. Your Chrysler Home Mortgage broker can
help you quickly perform a cost/benefit analysis.
If you’re trying to lower your monthly payment, calculate
how much refinancing will cost (closing costs, loan
fees, etc), and then how much you’ll save each month.
You’ll know how long it will take you to break even
on refinancing and then how much you’ll save each month.
For example: refinancing your home mortgage costs $2,400.
Your monthly payment will decrease by $115 per month.
Divide $2,400 by $115, and you’ll see it will take 21
months to break even. If you plan to live in your house
for longer than that, refinancing makes sense after
you break even, each month you have $115 more in your
pocket. (And if cash flow is a problem, each month your
house payment will be $115 less even before you break
even, giving you extra money for other bills or payments.) |
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| Other Tips: |
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If possible,
always refinance your first mortgage before you
get a second mortgage. Most lenders look at the
total value of loans you have against your property
when deciding whether to approve your loan. If
you already have a second mortgage, you may have
to pay higher interest rates when refinancing
your first mortgage or you may have difficulty
simply getting approved. |
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If you
have a home equity line, don’t “cash out” before
refinancing. “Cash out” means you have drawn money
from your equity line for uses other than home
improvements. Lenders prefer you use home equity
lines for home improvements because you’re adding
more value to your home, making their loans less
risky. (The greater the difference between your
home’s value and the loan against it, the less
risk they face if you default on your loan.) So
if you have a choice, refinance first. |
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