Refinancing: Which Option is for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than applicants! Contact us at (708) 403-5181 and we can work with you to qualify you for the right refinance loan program for your needs. What are your reasons for your refinance loan? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Are achieving reduced mortgage payments and a better rate your main refinance goals? Then the best option might be a low fixed-rate loan. Maybe you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate can vary. Even when interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This kind of loan is particularly a wise idea if you aren't planning a move within the next five years or so. On the other hand, if you do see yourself moving before too long, an adjustable rate mortgage with a low initial rate may be the best way to reduce your monthly payment.
Are you hoping to cash out some of your home equity with your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you'll need to apply for a loan above the remaining balance of your existing mortgage loan.So you'll You will be looking for a loan for more than the current balance on your present mortgage in this case. However, if your mortgage rate is high now and you have held it for a long time, you may be able to accomplish your goals without an increase in your mortgage payment.
Do you have other debt, perhaps with high interest, that you want to consolidate? If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars each month.
Switching to a Shorter Term Loan
Are you hoping to fatten up your equity faster, and pay your mortgage loan off more quickly? Then, you'll need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and increasing your home equity faster, although your monthly payments will likely be bigger than you were paying. However, if you've had your current thirty-year loan for a number of years and the loan balance is rather low, you might be do this without increasing your monthly mortgage payment — it's even possible to save! To help you figure out your options and the many benefits of refinancing, please call us at (708) 403-5181. We are here for you.
Want to know more about refinancing your home? Give us a call: (708) 403-5181.