Refinancing: Which Option is for You?
There aren't as many refinance loan programs as there are applicants, but sometimes it feels like it! Contact us at 630-717-3600 and we will work with you to qualify you for the perfect refinance loan program to fit your financial situation. In order to review your choices, you'll need to consider what you want to achieve with the refinance.
Lowering Your 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 option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set that low interest rate for the life of your loan. If you are not expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a wise option. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you are planning some home improvements. Then you'll want to find a loan above the balance remaining on your existing mortgage.So you will want However, if your mortgage rate is high now and you've held it for a long time, you may be able to accomplish your goals without a rise in your mortgage payment.
Maybe you hope to cash out some home equity (cash out) to put toward other debt. If you have built up some equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) could help save you a lot of money each month.
Paying it off Faster
Are you dreaming of paying off your loan sooner, while building up your equity quicker? If this is your hope, the refinance can switch you to a mortgage loan program with a short, for example: a 15 year loan. You will be paying less interest and growing your home equity more quickly, although your monthly payments will likely be higher than you were paying. But, you may be able to make the change without much increase in your monthly payment if your long term loan was closed a while ago, and the balance remaining is low. You may even pay less! To help you figure out your options and the multiple benefits of 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.