Which Refinancing Option is Best for You?
Although it may seem like it sometimes, there are not as many loan options as there are applicants! Call us at 630-717-3600 and we will match you with the refinance program that best fits you. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan could be a good option for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate varies. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your loan, even if interest rates rise. If you are expecting to stay in your home for at least five more years, a fixed rate mortgage may be an especially good option for you. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Are you refinancing primarily to pull out some equity for an infusion of cash? Maybe you're planning a special vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. Then you will need to apply for a loan higher than the remaining balance of your present mortgage.With this goal, you'll You'll be looking for a loan for more than the current balance on your present mortgage in this case. If you've had your existing mortgage for quite a while and/or have a mortgage loan with high interest, you may be able to do this without making your mortgage payment higher.
Perhaps you'd like to pull out some of the equity in your home (cash out) to put toward other debt. If you have enough home equity, paying off other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could help save you a lot of money every month.
Building up Equity More Quickly
Are you wanting to fatten your home equity faster, and pay your mortgage loan off more quickly? If this is your wish, the refinance loan can change you to a mortgage program with a shorter term, like a 15 year loan. You will be paying less interest and growing your home equity faster, although your mortgage payments will usually be more than they were. Conversely, if your existing long-term mortgage has a low balance remaining, and was closed a number of years ago, you may even be able to make the change without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at 630-717-3600. We are here for you.
Want to know more about refinancing? Call us at 630-717-3600.