Selecting a Refinancing Program
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There are an enormous number of refinancing options available to borrowers. We can guide you to find the refinance program that will fit your situation the best. Contact us at 312-829-1010 to get started. There are some general questions to ask yourself as you review your options.
Making Your Payments Lower
Are getting reduced monthly payments and an improved rate your main reasons for refinancing? If so, your best choice may be a low fixed-rate loan. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you expect to live in your home for at least five more years, a fixed rate mortgage may be an especially good fit for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower payments.
Is "cashing out" your primary reason for your refinance? It could be you need to make home improvements, pay your child's college tuition bill, or take a cruise. With this in mind, you will want to apply for a loan above the balance remaining of your present mortgage.With this goal, you You will want to apply for a loan for a bigger amount than the current balance with your current home loan in that case. However, if your mortgage rate is high now and you've held it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you hold other debt, maybe with a higher interest rate, that you need to consolidate? If you own any higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of home equity.
Paying it off Sooner
Do you need to build up equity more quickly, and have your mortgage paid off faster? If this is your hope, your refinance loan can move you to a mortgage program with a short, like a 15 year loan. You will be paying less interest and growing your home equity more quickly, even though your payments will generally be bigger than they were. However, if you've held your current thirty-year loan for a number of years and the loan balance is rather low, you could be able to do this without increasing your mortgage payment — it's even possible to save! To help you determine your options and the numerous benefits of refinancing, please contact us at 312-829-1010. We are here for you.