Which Refinancing Loan Program is Right for You?
The huge number of refinance options available to borrowers is truly breathtaking. Call us at (773) 774-9040 Ext 121 and we can work with you to qualify you for the best refinance loan for your needs. In the interest of looking at your options, you should determine your goals for your refinance.
Lowering Your Payments
Are achieving lower payments and an improved rate your main refinance goals? Then a good choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are expecting to stay 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 plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Your house needs renovating; your son has been accepted to University and needs tuition; or you have a special family vacation planned. Then you will need to get a loan for more than the remaining balance of your present mortgage.With this goal, you You'll be looking for a loan for a higher amount than the remaining balance on your existing mortgage in that case. You may not increase your monthly payemnt, however, if you have had your existing mortgage for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with a higher interest rate, that you need to consolidate? If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can possible save several hundred dollars in your monthly budget.
Building up Equity More Quickly
Are you dreaming of paying your loan off more quickly, while building up your equity faster? In that case, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your equity more quickly, although your monthly payments will usually be higher than you were paying. However, if you have had your existing 30-year loan for a number of years and the remaining balance is somewhat low, you may be able to do this without raising your mortgage payment — it's even possible to save! To help you understand your options and the many benefits in refinancing, please contact us at (773) 774-9040 Ext 121. We are here for you.
Want to know more about refinancing your home? Call us at (773) 774-9040 Ext 121.