Selecting a Refinancing Program
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Although it may seem like it at times, there are not as many refinance options as there are borrowers! Contact us at 312-829-1010 and we'll help you qualify for the best refinance loan program to fit your situation. There are some general things to keep in mind as you consider the choices.
Lowering Your Payments
Are achieving lower mortgage payments and a better rate your main refinance goals? Then a low, fixed rate loan may be the best choice for you. Maybe you now hold a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even if rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in that low rate for the term of your mortgage. If you plan to stay in your home for about five more years, a fixed rate loan may be an especially good option for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get reduced payments. By refinancing your current mortgage, your total finance charges may be more over the life of the loan.
Refinancing to Cash Out
Are you wanting to cash out some of your home equity in your refinance? Maybe you need to pay for home improvements, pay your child's college tuition bill, or go on a dream vacation. With this in mind, you'll need to apply for a loan higher than the balance remaining of your present mortgage loan.So you You'll be looking for a loan for a higher amount than the remaining balance with your present mortgage in that case. If you've had your existing mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment bigger.
Do you want to cash out some equity to consolidate other debt? Great plan! If you hold some debt with higher interest (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the right amount of home equity.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while beefing up your home equity faster? You should consider refinancing to a shorterterm loan, like a 15-year mortgage. Your monthly payments will likely be more than they were with the longer term loan, but in exchange, you will pay substantially less interest and can build up equity more quickly. Conversely, if your existing long-term mortgage loan has a small remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you determine your options and the many benefits in refinancing, please contact us at
312-829-1010. We are here for you.
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