Refinancing: Which Program is for You?
The huge number of refinance options available can be overwhelming. Contact us at 630-717-3600 and we'll help you qualify for the best loan program to fit your needs. In order to review your choices, you will need to think about what you want to achieve with the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the term of your loan. If you expect to live in your home for at least five more years, a fixed-rate loan may be a particulary good choice for you. However, an ARM with a initial low payment may be a better way to reduce your payments if you plan on moving in the near future.
Getting Out some Cash
Are you hoping to cash out some of your home equity with your refinance? Maybe you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. Then you'll want to get a loan higher than the remaining balance on your current mortgage.With this goal, you want You may not increase your monthly payemnt, though, if you have had your existing mortgage loan for a number of years, and/or your loan interest rate is high.
Do you have other debt, perhaps with a higher interest rate, that you need to consolidate? If you own any higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Paying it off Sooner
Are you dreaming of paying your loan off more quickly, while beefing up your home equity more quickly? Consider refinancing to a short-term loan, like a 15-year mortgage loan. Your monthly payments will probably be higher than they were with your long-term mortgage loan, but in exchange, that you will pay substantially less interest and can build up equity quicker. On the other hand, if your existing longer term loan has a low remaining balance, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at 630-717-3600. We would love to help you reach your goals!
Curious about refinancing? Call us at 630-717-3600.