Which Refinancing Loan Program is Right for You?
There are not as many refinance loan options as there are borrowers, but it seems like it at times! Contact us at 630-717-3600 and we can match you with the refinance program that best fits you. There are several things to bear in mind as you review your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in that low rate for the life of your mortgage. If you are planning to stay in your home for about five more years, a fixed rate mortgage may be an especially good choice for you. On the other hand, if you do see yourself selling your home in the near future, an ARM mortgage with a low initial rate could be the ideal way to reduce your monthly payment.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? Perhaps you want to make home improvements, pay your child's college tuition bill, or take your dream vacation. Then you'll want to apply for a loan higher than the remaining balance of your present mortgage loan.In this case, you'll want You may not increase your mortgage payemnt, however, if you have had your current mortgage for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you can possible save several hundred dollars a month.
Switching to a Shorter Term Loan
Are you planning to fatten up your equity faster, and pay off your mortgage sooner? In that case, you need to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage program. You will be paying less interest and increasing your home equity faster, although your monthly payments will likely be higher than they were. On the other hand, if your existing longer term mortgage has a small remaining balance, and was closed a number of years ago, you might be able to make the change without paying more each month. To help you determine your options and the many benefits of refinancing, please call us at 630-717-3600. We are here for you.
Curious about refinancing? Call us at 630-717-3600.