Refinancing: Which Program is for You?
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There are an enormous number of refinancing programs available to borrowers. We can guide you to locate the refinance loan program that can fit your financial situation the best. Contact us at 708.499.6088 to begin the process. In order to review your choices, you can think about your goals for the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, 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 might want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage loan, even as interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a wise loan option. However, an ARM with a initial low payment may be a smarter way to lower your payments if you plan on moving within the near future.
Is your refinance goal mainly to "cash out" some home equity? Your home needs updating; your daughter has gone to University and needs tuition; or you are planning a special vacation. So you'll need to get a loan above the balance remaining of your present mortgage.With this goal, you'll want to qualify for a loan program for a higher amount than the balance remaining on your existing mortgage loan. You might not have an increase in your monthly payment, however, if you've had your existing mortgage for a while, and/or your interest rate is high.
Do you want to cash out a portion of your equity to consolidate other debt? Great idea! If you have the equity in your home 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 can save possibly hundreds of dollars in your monthly budget.
Getting a Shorter Term Loan
Do you want to build up home equity quicker, and have your mortgage paid off sooner? In that case, you want to find out about refinancing to a short term mortgage loan - like a fifteen-year loan. You will be paying less interest and growing your home equity more quickly, even though your monthly payments will usually be more than you were paying. But, you could be able to switch without a higher monthly payment if your long term mortgage was closed a while back, and the balance remaining is low. You may even pay less! To help you understand your options and the many benefits in refinancing, please call us at 708.499.6088. We are here for you.
Curious about refinancing your home? Call us at 708.499.6088.