Refinancing: Which Option is for You?
There aren't as many loan programs as there are borrowers, but it seems like it sometimes! Contact us at (773) 774-9040 Ext 121 and we will help you qualify for the perfect refinance program for your financial situation. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving better monthly payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even as interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a good choice. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced mortgage payments.
Getting Out some Cash
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? It could be you need to pay for home improvements, pay your child's college tuition bill, or go on a dream vacation. With this in mind, you will want to get a loan above the balance remaining of your existing mortgage.Then you will want to find a loan program for a bigger number than the remaining balance on your existing mortgage loan. However, if your interest rate is currently high and you've had it for a long time, you could be able to reach your goals without a rise in your mortgage payment.
Do you want to cash out some equity to consolidate other debt? Good idea! If you have any debt with steep interest (like credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.
Building up Equity Faster
Do you need to build up equity quicker, and pay off your mortgage faster? Then, you want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, even though your mortgage payments will generally be bigger than they were. However, if you have had your current thirty year mortgage for a long time and the loan balance is relatively low, you could be do this without increasing your monthly payment — it's even possible to save! To help you understand your options and the numerous benefits in refinancing, please call us at (773) 774-9040 Ext 121. We will help you reach your goals!
Want to know more about refinancing? Give us a call at (773) 774-9040 Ext 121.