Which Refinancing Program is Best for You?
Even though it may seem like it sometimes, there aren't as many refinance options as there are applicants! Contact us at (708) 403-5181 and we'll help you qualify for the right refinance program to fit your financial needs. There are some general things to have in mind while you review your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan might be a wise choice for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for about five more years, a loan with a fixed rate may be an especially good choice for you. However, an ARM with a low intitial payment may be a smarter way to lower your monthly payments if you expect to move within the near future.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? Perhaps you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you will want to get a loan above the balance remaining of your existing mortgage loan.With this goal, you will You'll need to get a loan for a bigger amount than the remaining balance with your existing mortgage in that case. You may not increase your mortgage payemnt, though, if you've had your existing loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Maybe you'd like to pull out some home equity (cash out) to use toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your budget each month.
Building up Equity Faster
Are you wanting to fatten up your equity faster, and pay off your mortgage sooner? Then, you want to look into refinancing to a short term mortgage - such as a fifteen-year loan. You will be paying less interest and increasing your equity faster, even though your monthly payments will generally be more than they were. However, if you have held your current 30 year mortgage for a number of years and the loan balance is somewhat low, you may be do this without raising your monthly payment — it's even possible to save! To help you figure out your options and the many benefits in refinancing, please contact us at (708) 403-5181. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call: (708) 403-5181.