Refinancing: Which Option is for You?

There are not as many loan programs as there are applicants, but sometimes it feels like it! Contact us at 630-717-3600 and we'll help you qualify for the perfect refinance loan for your financial situation. What are your goals for your refinance loan? Considering in mind the information below will help you narrow your choices.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs 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. This can be particularly a wise choice if you don't think you'll be selling your home within the next five years or so. On the other hand, if you can see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate might be the ideal way to lower your monthly payments.

Refinancing to Cash Out

Is "cashing out" your primary reason for your refinance? It could be you want to update your kitchen, pay your child's college tuition bill, or go on a special family vacation. With this in mind, you will want to qualify for a loan for more than the remaining balance on your current mortgage loan.With this goal, you will need If you've had your existing mortgage for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.

Consolidating Debt

Maybe you'd like to pull out a portion of the home equity (cash out) to use toward other debt. If you have built up some equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) may help save you a lot of cash every month.

Building up Equity Faster

Are you planning to fatten up your home equity faster, and get your mortgage paid off more quickly? Consider refinancing with a short-term loan, such as a 15-year mortgage loan. Even though your monthly payment amount will likely be increased, you will be paying less interest; so your equity amount will rise up faster. But, you might be able to make the change without a higher monthly payment if your long term mortgage was closed a while ago, and the remaining balance is low. You may even make it lower! To help you determine your options and the multiple benefits in refinancing, please call us at 630-717-3600. We are here for you.

Want to know more about refinancing? Call us: 630-717-3600.


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