Which Refinancing Loan Program is Best for You?
There are an enormous number of refinancing programs available to borrowers. Call us at 630-717-3600 and we can work with you to qualify you for the right refinance loan program for your needs. There are several things to bear in mind while you look at your options.
Lowering Your Payments
Are achieving lower payments and a lower rate your main refinance goals? If so, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your mortgage, even when interest rates rise. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can especially be a great choice. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower monthly payments.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity in your refinance? It could be you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. So you will want to find a loan above the remaining balance of your existing mortgage loan.With this goal, you will need However, if your loan interest rate is high now and you've held it for quite a few years, you could be able to achieve your goals without making your mortgage payments bigger.
Consolidating Your Debt
Perhaps you want to pull out a portion of the home equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your monthly budget.
Switching to a Shorter Term Loan
Do you hope to build up equity more quickly, and have your mortgage paid off sooner? Then, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Although your mortgage payments will probably be increased, you will be paying less interest; so your equity amount will build up faster. But, you could be able to switch without a higher monthly mortgage payment if your longer term loan was closed a while ago, and the balance remaining is low. You may even pay less! To help you understand your options and the numerous benefits in refinancing, please call us at 630-717-3600. We would love to help you reach your goals!
Curious about refinancing your home? Call us at 630-717-3600.