Choosing a Refinancing Loan

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When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than applicants! We can guide you to select the loan program that can fit your situation the best. Contact Mike at 708-647-5246 to begin the process. In the interest of looking at your options, you should list your goals for your refinance.

Lowering Your Payments

Is your refinance primarily to lower your rate and monthly payments? If so, the best choice could be a low fixed-rate loan. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even as interest rates rise. If you are expecting to stay in your home for at least five more years, a fixed rate mortgage may be an especially good option for you. However, an ARM with a low initial payment could be a smarter way to reduce your payments if you expect to move in the near future.

Getting Out some Cash

Is "cashing out" your main purpose for your refinance? Maybe you're dreaming of a cruise; you need to pay college tuition for your child; or you plan to renovate your home. Then you'll want to find a loan higher than the remaining balance on your existing mortgage.With this goal, you need You may not have an increase in your mortgage payment, though, if you've had your existing mortgage loan for a number of years, and/or your interest rate is high.

Debt Consolidation

Do you want to cash out a portion of your equity to consolidate additional debt? Good idea! If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars a month.

Getting a Shorter Term Loan

Are you hoping to fatten your home equity faster, and pay your mortgage off more quickly? If this is your plan, the refinance can switch you to a mortgage program with a short, for example: a 15 year loan. You will be paying less interest and growing your home equity more quickly, although your mortgage payments will usually be higher than they were. However, if you've had your existing 30 year loan for a number of years and the remaining balance is rather low, you could be do this without increasing your monthly payment — you might even be able to save! To help you understand your options and the many benefits of refinancing, please call Mike at 708-647-5246. We would love to help you reach your goals!

Want to know more about refinancing? Call Mike at 708-647-5246.