Which Refinancing Loan Program is Best for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than borrowers! We can help you choose the loan program that will fit your situation the best. Call us at 708.966.9005 to get started. In the interest of looking at your choices, you can list your goals for the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in the low interest rate for the life of your mortgage. If you are not planning on moving in the near future (about 5 years), a fixed rate mortgage loan can especially be a good choice. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary purpose for refinancing? Perhaps you need to update your kitchen, pay your child's college tuition bill, or take a cruise. In this case, you'll want to find a loan higher than the remaining balance on your present mortgage.So you need You may not increase your mortgage payemnt, however, if you've had your current mortgage for a number of years, and/or your loan interest rate is high.
Do you want to pull out some equity to consolidate additional debt? Yes you can! 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 save possibly several hundred dollars monthly.
Building up Equity More Quickly
Are you dreaming of paying your loan off more quickly, while beefing up your home equity more quickly? Consider refinancing with a shorterterm loan, like a 15-year mortgage loan. Your monthly payments will likely be higher than they were with your long-term loan, but in exchange, that you will pay quite a bit less interest and can build up equity quicker. On the other hand, if your current long-term mortgage loan has a small balance remaining, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you determine your options and the multiple benefits of refinancing, please call us at 708.966.9005. We can help you reach your goals!
Want to know more about refinancing your home? Call us: 708.966.9005.