Refinancing: Which Program is for You?
Even though it may seem like it sometimes, there are not as many loan programs as there are applicants! Contact us at (773) 774-9040 Ext 121 and we'll help you qualify for the right loan program to fit your financial situation. In the interest of looking at your options, you can determine what you want to achieve with the refinance.
Lowering Your Payments
Are achieving reduced payments and an improved rate your main refinance goals? If so, your best option may be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low interest rate for the life of your loan. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a wise loan option. On the other hand, if you do see yourself moving within the next few years, an ARM with a small initial rate might be the best way to bring down your monthly payments.
Are you refinancing mainly to "cash out" some home equity? Your home needs updating; your daughter has gone to college and needs tuition money; or you are planning a special vacation. In this case, you want to find a loan higher than the remaining balance on your existing mortgage loan.In this case, you'll want to qualify for a loan for a higher number than the remaining balance on your current mortgage loan. However, if your interest rate is high now and you have held it for a long time, you could be able to accomplish your goals without an increase in your mortgage payment.
Consolidating Your Debt
Maybe you'd like to cash out some equity (cash out) to use toward other debt. If you have a fair amount of home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a lot of cash each month.
Getting a Shorter Term Loan
Do you want to build up equity quicker, and have your mortgage paid off more quickly? Consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. Although your monthly payments will usually be increased, you will save on interest; so your equity will build up faster. On the other hand, if your existing long-term mortgage loan has a low balance remaining, and was closed a while ago, you might be able to make the change without paying more each month. To help you understand your options and the numerous benefits of refinancing, please contact us at (773) 774-9040 Ext 121. We are here for you.
Curious about refinancing your home? Call us: (773) 774-9040 Ext 121.