Which Refinancing Option is Best for You?

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There are a huge number of refinancing options available to borrowers. We can help you locate the refinance program that can fit your financial situation the best. Contact us at 708-647-5252 to begin the process. There are some general things to bear in mind while you look at the choices.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan could be a good choice for you. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you set that low interest rate for the life of your loan. If you are expecting to live in your home for about five more years, a loan with a fixed rate may be an especially good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower mortgage payments.

Getting Out some Cash

Are you hoping to cash out some of your home equity with your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you'll want to get a loan above the remaining balance of your present mortgage loan.In that case, you will want However, if your mortgage rate is high now and you've held it for quite a few years, you could be able to achieve your goals without making your mortgage payments higher.

Debt Consolidation

Do you want to cash out a portion of your equity to consolidate additional debt? Good idea! If you own some debt with high interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough home equity.

Building up Equity More Quickly

Do you plan to build up home equity more quickly, and pay off your mortgage sooner? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage. You will be paying less interest and increasing your home equity faster, although your payments will generally be bigger than you have been paying. However, if you've had your current 30 year mortgage for a long time and the loan balance is somewhat low, you might be able to do this without raising your monthly mortgage payment — you may even be able to save! To help you figure out your options and the multiple benefits of refinancing, please call us at 708-647-5252. We are here for you.

Curious about refinancing your home? Give Lou a call: 708-647-5252.