Which Refinancing Program is Best for You?
The huge number of refinance options available to borrowers is truly breathtaking. We can guide you to find the refinance program that can fit your situation the best. Call us at (773) 774-9040 Ext 121 to begin the process. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you narrow your choices.
Lowering Your Payments
Are getting lower mortgage payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be the best choice for you. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even if interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can particularly be a wise loan option. However, if you do see yourself moving within the next few years, an adjustable rate mortgage with a low initial rate could be the best way to lower your monthly payment.
Refinancing to Cash Out
Is "cashing out" your primary purpose for refinancing? Maybe you want to update your kitchen, take care of your college kid's tuition, or go on a dream vacation. Then you will need to get a loan above the remaining balance of your present mortgage.So you will want You might not increase your mortgage payemnt, though, if you have had your existing loan for a long time, and/or your interest rate is high.
Perhaps you hope to cash out some of the equity in your home (cash out) to use toward other debt. If you hold some debt with higher interest (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough equity.
Building up Equity More Quickly
Do you hope to build up equity more quickly, and have your mortgage paid off sooner? Then, you want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. The monthly payments will likely be higher than they were with a longer term mortgage loan, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. However, if you've had your current thirty-year mortgage loan for a number of years and the remaining balance is somewhat low, you might be able to do this without increasing your monthly payment — it's even possible to save! To help you figure out 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: (773) 774-9040 Ext 121.