Selecting a Refinancing Option
The number of refinance options available is truly breathtaking. Call us at 630-717-3600 and we can match you with the refinance loan program that best fits you. There are several things to have in mind while you look at the choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal loan program for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage, even when interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise loan option. On the other hand, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a low initial rate could be the best way to reduce your monthly payment.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. With this in mind, you will need to get a loan above the remaining balance of your current mortgage loan.Then you You'll need to apply for a loan for a higher amount than the remaining balance of your present mortgage in this case. You may not increase your mortgage payemnt, however, if you've had your existing mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you want to cash out a portion of your equity to consolidate other debt? Yes you can! If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars in your monthly budget.
Paying it off Faster
Are you planning to fatten up your equity faster, and pay your mortgage loan off more quickly? If this is your plan, the refinance can change you to a mortgage loan program with a shorter term, such as a 15 year loan. Your monthly payments will probably be more than they were with the long-term mortgage, but in exchange, you will pay considerably less interest and can build up equity more quickly. But, you may be able to switch without a higher monthly payment if your long term mortgage was closed a while back, and the balance remaining is somewhat low. You may 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 to help you reach your goals!
Curious about refinancing your home? Give us a call at 630-717-3600.