Selecting a Refinancing Option
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than applicants! We can help you select the refinance program that can fit your financial situation the best. Contact us at (773) 774-9040 Ext 121 to get started. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Are achieving better mortgage payments and a lower rate your main reasons for refinancing? If so, a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for at least five more years, a fixed-rate loan may be a particulary good option for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Getting Out some Cash
Is "cashing out" your main purpose for your refinance? Your house needs improvements; your son has gone to University and needs tuition money; or you are taking your family on a cruise. So you'll want to apply for a loan above the remaining balance of your existing mortgage loan.Then you want You might not have an increase in your monthly payemnt, however, if you've had your existing mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with high interest, that you want to consolidate? If you have the home equity to make it work, paying off 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 in your budget each month.
Building up Equity More Quickly
Do you hope to build up home equity quicker, and have your mortgage paid off sooner? Then, you'll want to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Your mortgage payments will probably be higher than they were with your longer term loan, but in exchange, that you will pay considerably less interest and can build up equity quicker. Conversely, if your existing longer term mortgage has a small balance remaining, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you understand your options and the many benefits in refinancing, please contact us at (773) 774-9040 Ext 121. We will help you reach your goals!
Curious about refinancing your home? Give us a call at (773) 774-9040 Ext 121.