Choosing a Refinancing Program
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than borrowers! Contact us at 630-717-3600 and we'll work with you to qualify you for the perfect refinance loan program to fit your situation. There are some general things to bear in mind as you consider the 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 the right loan program for you. Maybe you now hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest varies. Even when interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a good option. However, an ARM with a low intitial payment could be a better way to reduce your mortgage payments if you plan on moving in the near future.
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? Perhaps you need to update your kitchen, pay your child's college tuition bill, or go on a special family vacation. Then you need to find a loan higher than the remaining balance of your current mortgage loan.Then you want to qualify for a loan for a higher amount than the remaining balance on your present mortgage loan. However, if your mortgage rate is currently high and you've held it for quite a few years, you could be able to achieve your goals without an increase in your mortgage payment.
Do you want to cash out some home equity to consolidate additional debt? Good plan! If you have built up some equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash every month.
Paying it off Sooner
Do you want to build up equity more quickly, and pay off your mortgage more quickly? If this is your hope, the refinance mortgage can switch you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your home equity faster, even though your mortgage payments will generally be higher than they were. But, you could be able to switch without a bigger monthly payment if your longer term mortgage was closed a while ago, and the balance remaining is low. You could even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at 630-717-3600. We are here for you.
Want to know more about refinancing? Call us: 630-717-3600.