Selecting a Refinancing Loan
Although it seems like it at times, there are not as many refinance loan options as there are applicants! We can guide you to select the refinance program that will fit your financial situation the best. Contact us at 708.966.9005 to begin the process. What are your reasons for your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the best loan program for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even if interest rates rise. This is particularly a wise choice if you don't think you will sell your home within the next 5 years or so. On the other hand, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate could be the best way to bring down your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? Maybe you need to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. Then you will need to apply for a loan higher than the balance remaining of your present mortgage loan.With this goal, you You will be looking for a loan for more than the current balance of your present home loan in this case. If you've had your current mortgage for a long time and/or have a mortgage with high interest, you may be able to do this without making your monthly payment higher.
Perhaps you want to cash out some equity in your home (cash out) to use toward other debt. If you have any debt with high interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the home equity built up to make it work.
Getting a Shorter Term Loan
Are you hoping to fatten up your home equity faster, and pay your mortgage loan off more quickly? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your home equity faster, even though your payments will usually be bigger than you were paying. But, you may be able to make the change without much increase in your monthly payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low enough. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please call us at 708.966.9005. We are here for you.
Curious about refinancing? Give us a call at 708.966.9005.