Selecting a Refinancing Loan

Although it may seem like it at times, there are not as many loan options as there are borrowers! Call us at (708) 403-5181 and we can match you with the loan program that is ideal for your needs. There are some general questions to ask yourself while you look at the choices.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the loan, even as interest rates rise. This is especially a good choice if you don't expect to sell your home within the next 5 years or so. However, an ARM with a initial low payment may be a wiser way to lower your monthly payments if you expect to move in the next few years.

Getting Out some Cash

Is "cashing out" your primary reason for refinancing? Your house needs renovating; your daughter has been accepted to University and needs tuition money; or you are planning a special vacation. Then you want to qualify for a loan higher than the remaining balance on your existing mortgage loan.In that case, you want to need to get a loan program for a bigger number than the remaining balance on your present mortgage loan. You might not increase your mortgage payemnt, however, if you have had your current mortgage for a while, and/or your interest rate is high.

Consolidating Debt

Do you want to pull out a portion of your home equity to consolidate additional debt? Yes you can! If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can possible save several hundred dollars in your monthly budget.

Paying it off Sooner

Are you wanting to fatten your equity faster, and get your mortgage paid off more quickly? Consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. Your monthly payments will probably be more than they were with a longer term mortgage loan, but the pay-off is: you will pay substantially less interest and can build up equity quicker. But, you could be able to make the change without much increase in your monthly mortgage payment if your long term loan was closed a while back, and the remaining balance is low enough. You may even make it lower! To help you understand your options and the many benefits in refinancing, please contact 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.

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