Which Refinancing Option is Right for You?
There aren't as many refinance loan options as there are borrowers, but it feels like it sometimes! We can help you locate the refinance loan program that can fit your needs the best. Contact us at (708) 403-5181 to get things started. What are your goals for refinancing? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the ideal 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 if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low rate for the life of your loan. If you aren't planning on moving in the near future (about 5 years), a fixed rate mortgage loan can especially be a good choice. However, an ARM with a low intitial payment could be a smarter way to lower your mortgage payments if you plan on moving in the near future.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? Perhaps you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you will need to get a loan above the balance remaining on your existing mortgage loan.So you will want However, if your mortgage rate is high now and you have held it for a long time, you could be able to accomplish your goals without making your monthly payments rise.
Do you want to cash out a portion of your home equity to consolidate other debt? Great idea! If you have any debt with higher interest (such as credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of equity.
Getting a Shorter Term Loan
Do you need to build up equity quicker, and have your mortgage paid off more quickly? If this is your goal, your refinance mortgage can switch you to a mortgage loan program with a shorter term, such as a 15 year loan. Your monthly payments will probably be higher than with your longer term mortgage, but in exchange, that you will pay substantially less interest and can build up equity quicker. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the remaining balance is somewhat low. You may even pay less! To help you understand 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? Call us at (708) 403-5181.