Refinancing: Which Loan Program is for You?
There are not as many refinance loan programs as there are borrowers, but at times it seems like it! Call us at 630-717-3600 and we will match you with the refinance loan program that fits you best. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then your best choice may be a low fixed-rate loan. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — with which the rate of interest varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the mortgage loan, even as interest rates rise. If you aren't planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise loan option. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced payments.
Getting Out some Cash
Are you refinancing primarily to pull out some of your equity for an infusion of cash? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you are planning some home improvements. In this case, you want to get a loan above the remaining balance of your current mortgage.In this case, you'll need However, if your mortgage rate is currently high and you have held it for a long time, you could be able to reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you want to cash out a portion of your home equity to consolidate additional debt? Good plan! If you have the home equity for it, taking care of other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars each month.
Building up Equity Faster
Are you dreaming of paying off your loan sooner, while beefing up your equity quicker? If this is your goal, your refinance loan can switch you to a mortgage loan program with a short, such as a 15 year loan. You will be paying less interest and growing your equity more quickly, even though your payments will likely be bigger than you were paying. However, if you've held your current thirty year mortgage for a long time and the remaining balance is rather low, you might be do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the many benefits in refinancing, please call us at 630-717-3600. We are here to help you reach your goals!
Want to know more about refinancing? Give us a call at 630-717-3600.