Choosing a Refinancing Loan
There are not as many refinance loan programs as there are applicants, but it seems like it at times! Contact us at (773) 774-9040 Ext 121 and we'll work with you to qualify you for the right refinance loan program to fit your financial situation. What are your goals for your refinance loan? Keeping in mind the following will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan may be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you set that low interest rate for the term of your loan. If you plan to live in your home for at least five more years, a fixed-rate loan may be an especially good fit for you. On the other hand, if you do see yourself moving in the near future, an ARM with a small initial rate could be the ideal way to lower your monthly payment.
Is "cashing out" your primary purpose for refinancing? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. So you need to find a loan higher than the remaining balance of your present mortgage.Then you will You will want to apply for a loan for a bigger amount than the balance remaining of your present mortgage loan in that case. You might not have an increase in your mortgage payemnt, however, if you've had your current mortgage loan for a number of years, and/or your interest rate is high.
Do you want to pull out a portion of your equity to consolidate other debt? Excellent idea! If you have built up some home equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) could help save you a lot of money each month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your home equity more quickly? Consider refinancing to a shorterterm loan, often a 15-year mortgage. Although your monthly payment amount will usually be increased, you will save on interest; so your equity amount will rise up faster. On the other hand, if your existing long-term loan has a low remaining balance, and was closed a while ago, you could be able to make the move without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please call us at (773) 774-9040 Ext 121. We are here for you.
Curious about refinancing your home? Give us a call at (773) 774-9040 Ext 121.