Refinancing: Which Program is for You?
There are not as many refinance loan options as there are applicants, but at times it feels like it! We can guide you to locate the refinance program that can fit your needs the best. Contact us at 708.966.9005 to get started. There are some general questions to ask yourself as you look at the options.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal option for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage, even if interest rates rise. If you are planning to live in your home for about five more years, a fixed rate loan may be an especially good fit for you. However, an ARM with a initial low payment could be a smarter way to lower your payments if you plan on moving within the near future.
Getting Out some Cash
Are you wanting to cash out some of your home equity in your refinance? Maybe you want to pay for home improvements, take care of your college kid's tuition, or go on a dream vacation. So you need to qualify for a loan for more than the remaining balance on your present mortgage loan.In this case, you You'll need to qualify for a loan for more than the current balance of your present mortgage loan in that case. You may not have an increase in your mortgage payemnt, however, if you have had your current mortgage for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to cash out some home equity to consolidate additional debt? Excellent idea! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your budget each month.
Building up Equity Faster
Do you plan to build up equity quicker, and pay off your mortgage faster? Then, you'll need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year loan. The mortgage payments will probably be more than they were with the long-term loan, but in exchange, that you will pay quite a bit less interest and will build up equity more quickly. But, you could be able to switch without a bigger monthly payment if your long term mortgage was closed a while back, and the remaining balance is low enough. You could even pay less! To help you understand your options and the numerous benefits of refinancing, please call us at 708.966.9005. We would love to help you reach your goals!
Want to know more about refinancing? Call us: 708.966.9005.