Selecting a Refinancing Loan
The huge number of refinance options available to borrowers can be overwhelming. We can help you find the refinance program that can fit your financial situation the best. Call us at 630-717-3600 to get things started. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Are getting lower mortgage payments and a better rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the ideal choice for you. Maybe you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Even if interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you expect to live in your home for about five more years, a fixed rate loan may be an especially good choice for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Is "cashing out" your main reason for refinancing? Maybe you want to make home improvements, take care of your college kid's tuition, or go on a dream vacation. Then you'll need to get a loan for more than the remaining balance of your current mortgage loan.With this goal, you'll You'll want to qualify for a loan for more than the balance remaining with your current mortgage in that case. If you've had your current mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.
Perhaps you want to cash out some of the equity in your home (cash out) to put toward other debt. If you own any higher interest debts (such as credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the equity built up to make it work.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while beefing up your equity more quickly? In that case, you need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. Even though your monthly payments will likely be increased, you will be paying less interest; so your home equity will rise up faster. But, you could be able to switch without a higher monthly payment if your longer term mortgage was closed a while back, and the balance remaining is low. You could even make it lower! To help you figure out your options and the many benefits in refinancing, please call us at 630-717-3600. We are here for you.