Selecting a Refinancing Program

There are not as many loan programs as there are borrowers, but sometimes it feels like it! Contact us at 630-717-3600 and we can match you with the loan program that is ideal for your needs. There are several questions to ask yourself as you review the choices.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the ideal option for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage loan with 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 loan, even if interest rates rise. A fixed-rate mortgage can be particularly a good choice if you don't think you will move within the next five years or so. But if you do plan 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

Are you hoping to cash out some of your home equity in your refinance? Maybe you need to update your kitchen, take care of your college kid's tuition, or go on a dream vacation. With this in mind, you need to find a loan for more than the remaining balance of your present mortgage.Then you will You'll want to get a loan for a higher amount than the balance remaining on your existing home loan in this case. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.

Consolidating Your Debt

Do you want to cash out a portion of your equity to consolidate other debt? Great plan! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your monthly budget.

Paying it off Sooner

Do you plan to build up home equity more quickly, and pay off your mortgage more quickly? Then, you'll want to look into refinancing to a short term mortgage - like a fifteen-year loan. Even though your monthly payment amount will probably be more, you will be paying less interest; so your home equity will rise up faster. But, you could be able to switch without much increase in your monthly payment if your long term loan was closed a while back, and the balance remaining is small. You could even pay less! To help you understand your options and the many benefits in refinancing, please call us at 630-717-3600. We will help you reach your goals!

Want to know more about refinancing your home? Give us a call at 630-717-3600.