Refinancing: Which Program is for You?
There are an enormous number of refinancing options available to borrowers. Contact us at 630-717-3600 and we'll help you qualify for the right refinance loan program to fit your situation. surveying your options, you'll need to think about what you want to achieve with the refinance.
Making Your Payments Lower
Are achieving reduced payments and an improved rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your loan, even when interest rates rise. If you are not planning on moving in the near future (about 5 years), a fixed-rate mortgage can especially be a wise option. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you plan on moving in the next few years.
Are you refinancing primarily to "cash out" some home equity? It could be you're planning a special vacation; you need to pay college tuition for your child; or you plan to renovate your home. So you need to qualify for a loan for more than the balance remaining of your existing mortgage.In that case, you'll want to qualify for a loan program for a higher amount than the remaining balance on your current mortgage loan. You may not increase your monthly payemnt, though, if you have had your current loan for a long time, and/or your loan interest rate is high.
Perhaps you'd like to cash out some equity in your home (cash out) to put toward other debt. If you have the equity in your home to make it work, 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 in your budget each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your equity quicker? Consider refinancing with a shorterterm loan, often a 15-year mortgage. Although your mortgage payment amount will probably be increased, you can be paying less interest; so your equity will rise up faster. On the other hand, if your current long-term mortgage has a small remaining balance, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please contact us at 630-717-3600. We will help you reach your goals!
Curious about refinancing? Give us a call at 630-717-3600.