Refinancing: Which Loan Program is for You?
There are an enormous number of refinancing programs available to borrowers. We can help you choose the refinance loan program that will fit your situation the best. Contact us at 630-717-3600 to get things started. There are several things to keep in mind as you consider your options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you currently hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even if rates get higher later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in that low rate for the term of your mortgage. A fixed-rate mortgage is especially a good choice if you don't think you will sell your home within the next 5 years or so. However, an ARM with a low intitial payment may be a smarter way to lower your monthly payments if you expect to move in the next few years.
Is "cashing out" your primary reason for your refinance? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you plan to renovate your home. So you will want to find a loan for more than the balance remaining on your current mortgage.So you'll want If you've had your existing mortgage for a number of years and/or have a mortgage loan with a high interest rate, you may be able to do this without making your monthly payment higher.
Do you have other debt, maybe with high interest, that you need to consolidate? If you hold any higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of equity.
Paying it off Sooner
Are you wanting to fatten your equity faster, and get your mortgage paid off sooner? If this is your goal, the refinance mortgage can switch you to a mortgage loan program with a short, such as a 15 year loan. You will be paying less interest and growing your home equity faster, even though your mortgage payments will likely be more than they were. However, if you've held your current thirty-year mortgage loan for a number of years and the remaining balance is somewhat low, you might be do this without raising your monthly payment — it's even possible to save! To help you understand your options and the multiple benefits in refinancing, please call us at 630-717-3600. We will help you reach your goals!
Want to know more about refinancing your home? Give us a call at 630-717-3600.