Which Refinancing Program is Best for You?
The huge number of refinance options available to borrowers can be overwhelming. Contact us at (708) 403-5181 and we'll help you qualify for the perfect refinance program for your situation. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then the best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even when interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are planning to live in your home for at least five more years, a fixed rate loan may be an especially good fit for you. However, an ARM with a low intitial payment could be a smarter way to reduce your mortgage payments if you expect to move in the next few years.
Getting Out some Cash
Are you refinancing primarily to pull out some equity for an infusion of cash? Maybe you're planning a special vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. So you need to get a loan above the remaining balance of your current mortgage.With this goal, you want However, if your interest rate is high now and you have held it for quite a few years, you could be able to accomplish your goals without making your mortgage payments bigger.
Consolidating Your Debt
Do you want to pull out a portion of your home equity to consolidate other debt? Excellent idea! If you have built up some equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a lot of cash every month.
Paying it off Sooner
Do you hope to build up home equity more quickly, and have your mortgage paid off faster? If this is your hope, the refinance can switch you to a loan program with a short, for example: a 15 year loan. Although your monthly payments will usually be more, you will be paying less interest; so your equity amount will build up faster. However, if you have held your current 30 year mortgage for a number of years and the loan balance is rather low, you could be able to do this without raising your monthly mortgage payment — you may even be able to save! To help you determine your options and the many benefits in 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 at (708) 403-5181.