Refinancing: Which Loan Program is for You?

The number of refinance options available to borrowers can be overwhelming. Call us at 630-717-3600 and we can match you with the refinance program that is ideal for your needs. There are several things to keep in mind as you review your options.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best option may be a low fixed-rate loan. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage loan, even when interest rates rise. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a great loan option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.

Refinancing to Cash Out

Is "cashing out" your primary purpose for your refinance? Your home needs updating; your daughter has gone to college and needs tuition; or you are planning a special vacation. Then you will want to get a loan above the remaining balance of your existing mortgage.Then you'll want However, if your loan interest rate is currently high and you've had it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.

Consolidating Your Debt

Maybe you want to cash out some of the home equity (cash out) to put toward other debt. If you have the home equity for it, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars monthly.

Paying it off Faster

Do you plan to build up equity quicker, and pay off your mortgage more quickly? Then, you need to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will usually be higher than they were. However, if you've had your existing thirty year loan for a number of years and the remaining balance is rather low, you might be able to do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits in refinancing, please call us at 630-717-3600. We are here for you.

Curious about refinancing? Give us a call: 630-717-3600.


English Spanish