Choosing a Refinancing Program
When you are overwhelmed with all the options, it may seem like there are even more refinance programs than applicants! We can help you select the loan program that will fit your financial situation the best. Contact us at 630-717-3600 to get started. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a good choice might be a low fixed-rate loan. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you hold 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 the mortgage, even as interest rates rise. This is especially a good option if you don't think you'll be moving within the next five years or so. However, if you can see yourself selling your home within several years, an ARM mortgage with a small initial rate may be the best way to lower your monthly payment.
Refinancing to Cash Out
Are you wanting to cash out some of your equity with your refinance? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. In this case, you want to find a loan for more than the balance remaining of your existing mortgage.So you need However, if your interest rate is currently high and you've held it for a long time, you may be able to reach your goals without an increase in your mortgage payment.
Do you hold other debt, perhaps with a high interest rate, that you need to consolidate? If you have some debt with high interest (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Paying it off Sooner
Are you hoping to fatten up your home equity faster, and get your mortgage paid off sooner? Then, you'll want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, even though your payments will likely be higher than you have been paying. On the other hand, if your current longer term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the change without paying more each month. To help you determine your options and the multiple benefits in refinancing, please call us at 630-717-3600. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us: 630-717-3600.