Which Refinancing Program is Right for You?
Even though it may seem like it at times, there aren't as many refinance choices as there are borrowers! We can guide you to locate the refinance loan program that will fit your situation the best. Call us at (773) 774-9040 Ext 121 to begin the process. In the interest of looking at your choices, you should consider what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are achieving lower mortgage payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. This can be particularly a good idea if you don't expect to sell your home within the next 5 years or so. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate to get reduced mortgage payments.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Your house needs new carpet; your son has gone to University and needs tuition money; or you are taking your family on a cruise. Then you will want to qualify for a loan for more than the balance remaining of your present mortgage.In that case, you'll want to qualify for a loan program for a bigger number than the balance remaining on your present mortgage loan. If you've had your existing mortgage for quite a while and/or have a loan whose interest rate is high, you might\could be able to do this without making your mortgage payment higher.
Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can possible save several hundred dollars monthly.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while beefing up your home equity quicker? If this is your wish, your refinance mortgage can move you to a mortgage loan program with a shorter term, for example: a 15 year loan. Even though your mortgage payment amount will usually be increased, you can be paying less interest; so your equity amount will rise up faster. Conversely, if your existing long-term loan has a small balance remaining, and was closed a while ago, you may even be able to make the change without paying more each month. To help you understand your options and the numerous benefits in refinancing, please call us at (773) 774-9040 Ext 121. We are here to help you reach your goals!
Curious about refinancing your home? Call us at (773) 774-9040 Ext 121.