Selecting a Refinancing Program
There are a huge number of refinancing options available to borrowers. Contact us at 847-278-7220 and we can help you qualify for the best refinance program to fit your needs. What are your reasons for your refinance loan? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are getting better payments and an improved rate your main reasons for refinancing? If so, getting a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This is particularly a wise option if you don't think you'll be selling your home within the next 5 years or so. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Are you refinancing primarily to pull out some equity for an infusion of cash? It could be you want to pay for home improvements, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you'll need to get a loan above the remaining balance on your present mortgage loan.With this goal, you will want to qualify for a loan for a bigger amount than the balance remaining on your present mortgage loan. You might not increase your monthly payemnt, though, if you've had your existing mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Perhaps you hope to cash out some home equity (cash out) to put toward other debt. If you have some higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the home equity built up to make it work.
Building up Equity More Quickly
Do you hope to build up home equity more quickly, and pay off your mortgage more quickly? If this is your wish, your refinance mortgage can switch you to a loan program with a short, like a 15 year loan. Even though your monthly payment amount will probably be more, you can save on interest; so your equity amount will build up faster. However, if you have had your existing 30 year mortgage loan for a number of years and the remaining balance is somewhat low, you may be able to do this without raising your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please call us at 847-278-7220. We are here for you.
Curious about refinancing? Call us: 847-278-7220.