Refinancing: Which Program is for You?

Are you looking for a new mortgage loan? We'd be thrilled to talk about your mortgage needs! Give us a call at (630) 305-9207. Want to get started? Apply Here.

There are not as many loan programs as there are borrowers, but it seems like it at times! Call us at (630) 305-9207 and we will match you with the refinance loan program that best fits you. In the interest of looking at your choices, you need to think about your goals for the refinance.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage 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. Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set that low rate for the term of your loan. A fixed-rate mortgage can be particularly a wise choice if you aren't planning a move within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to reduce your payments if you expect to move in the next few years.

Cashing Out

Are you hoping to cash out some of your equity in your refinance? It could be you're dreaming of a cruise; you have to pay college tuition for your child; or you plan to renovate your home. So you need to find a loan above the balance remaining on your existing mortgage loan.So you will You will want to find a loan for more than the current balance with your existing home loan in this case. If you've had your current mortgage loan for a long time and/or have a mortgage loan with a high interest rate, you might\could be able to do this without increasing your mortgage payment.

Consolidating Your Debt

Do you have other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have enough equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of cash each month.

Building up Equity More Quickly

Do you need to build up home equity quicker, and have your mortgage paid off faster? Then, you'll need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your equity faster, although your payments will generally be higher than they were. On the other hand, if your existing longer term mortgage loan has a small balance remaining, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at (630) 305-9207. We are here for you.

Curious about refinancing your home? Give us a call: (630) 305-9207.