Refinancing: Which Loan Program is for You?
Although it may seem like it at times, there aren't as many refinance choices as there are applicants! We can help you select the loan program that will fit your financial situation the best. Contact us at (773) 774-9040 Ext 121 to get things started. There are several questions to ask yourself as you consider the choices.
Making Your Payments Lower
Are achieving reduced payments and a lower rate your main reasons for refinancing? In that case, getting a low, fixed-rate loan may be a wise option for you. Perhaps you now hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the interest rate can vary. Even when rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low interest rate for the term of your mortgage. This kind of loan is particularly a good idea if you don't expect to move within the next 5 years or so. However, if you can see yourself selling your home in the near future, an ARM with a low initial rate could be the ideal way to lower your monthly payments.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Your house needs renovating; your daughter has gone to college and needs tuition money; or you are planning a special vacation. Then you'll need to look for a loan for more than the balance remaining on your current mortgage loan.Then you'll need You might not have an increase in your monthly payemnt, though, if you have had your existing loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Do you want to cash out a portion of your home equity to consolidate other debt? Good plan! If you have the equity in your home to make it work, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars each month.
Building up Equity More Quickly
Do you hope to build up home equity more quickly, and pay off your mortgage faster? If this is your plan, your refinance mortgage can switch you to a loan program with a shorter term, for example: a 15 year loan. Your payments will likely be more than with a long-term loan, but the pay-off is: you will pay considerably less interest and can build up equity quicker. However, if you have held your current 30-year mortgage loan for a long time and the remaining balance is rather low, you might be do this without increasing your mortgage payment — you might even be able to save! To help you determine your options and the numerous benefits of refinancing, please call us at (773) 774-9040 Ext 121. We are here for you.
Curious about refinancing your home? Call us: (773) 774-9040 Ext 121.