Which Refinancing Loan Program is Right for You?
There are not as many refinance loan options as there are applicants, but it feels like it sometimes! Call us at 630-717-3600 and we will match you with the loan program that fits you best. In order to review your options, you can list what you want to achieve with the refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right option for you. Maybe you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Even when rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low interest rate for the life of your mortgage. This is especially a wise choice if you aren't planning a move within the next 5 years or so. On the other hand, if you can see yourself moving in the near future, an adjustable rate mortgage with a low initial rate might be the ideal way to lower your monthly payment.
Getting Out some Cash
Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? Maybe you want to make home improvements, pay your child's college tuition bill, or take your dream vacation. Then you'll need to look for a loan above the balance remaining of your current mortgage loan.With this goal, you want You might not increase your mortgage payment, though, if you've had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you have other debt, perhaps with high interest, that you'd like to consolidate? If you hold any debt with steep interest (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough equity.
Building up Equity More Quickly
Are you planning to fatten your home equity faster, and pay off your mortgage loan sooner? In that case, you want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. The payments will probably be higher than they were with a long-term mortgage, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. However, if you have had your existing thirty-year loan for a number of years and the remaining balance is relatively low, you could be do this without raising your monthly mortgage payment — you might even be able to save! To help you understand your options and the numerous benefits in refinancing, please contact us at 630-717-3600. We are here for you.
Want to know more about refinancing your home? Give us a call at 630-717-3600.