Which Refinancing Option is Right for You?
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There are not as many loan programs as there are borrowers, but it seems like it at times! We can guide you to find the refinance program that will fit your situation the best. Call us at (773) 205-2323 to get started. What are your reasons for your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right choice 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 when rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you set that low rate for the term of your mortgage. If you expect to stay in your home for about five more years, a loan with a fixed rate may be a particularly good option for you. However, if you do see yourself moving within the next few years, an ARM mortgage with a small initial rate could be the ideal way to lower your monthly payment.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Your home needs improvements; your son has gone to college and needs tuition money; or you are taking your family on a cruise. With this in mind, you'll want to qualify for a loan for more than the remaining balance on your existing mortgage.So you'll want If you've had your current mortgage loan for quite a while and/or have a loan whose interest rate is high, you might\could be able to do this without making your mortgage payment bigger.
Do you hold other debt, perhaps with higher interest, that you want to consolidate? If you have any higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of home equity.
Paying it off Sooner
Are you dreaming of paying your loan off sooner, while beefing up your home equity more quickly? If this is your hope, your refinance mortgage can move you to a mortgage program with a shorter term, like a 15 year loan. The monthly payments will probably be more than they were with your long-term loan, but the pay-off is: you will pay quite a bit less interest and can build up equity quicker. But, you might be able to switch without much increase in your monthly mortgage payment if your longer term loan was closed a while back, and the remaining balance is small. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please contact us at (773) 205-2323. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us at (773) 205-2323.