Which Refinancing Program is Best for You?
There aren't as many refinance loan programs as there are applicants, but it feels like it at times! We can help you select the refinance loan program that can fit your situation the best. Call us at (773) 774-9040 Ext 121 to begin the process. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan may be a wise choice for you. 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 remain at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a great option. However, an ARM with a initial low payment could be a better way to lower your monthly payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity with your refinance? Your home needs new carpet; your daughter has been accepted to college and needs tuition money; or you are taking your family on a cruise. With this in mind, you will want to find a loan higher than the remaining balance on your existing mortgage loan.Then you need However, if your mortgage rate is high now and you've had it for a long time, you could be able to accomplish your goals without making your mortgage payments rise.
Do you have other debt, maybe with a higher interest rate, that you need to consolidate? If you have built up some home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a lot of money each month.
Switching to a Shorter Term Loan
Are you planning to fatten up your equity faster, and get your mortgage paid off more quickly? If this is your goal, your refinance can move you to a mortgage program with a shorter term, for example: a 15 year loan. The monthly payments will likely be more than with a longer term loan, but in exchange, that you will pay quite a bit less interest and will build up equity more quickly. But, you might be able to make the change without a higher monthly payment if your long term mortgage was closed a while back, and the balance remaining is small. You may even make it lower! To help you understand your options and the many benefits in refinancing, please call us at (773) 774-9040 Ext 121. We can help you reach your goals!
Curious about refinancing your home? Give us a call: (773) 774-9040 Ext 121.