Refinancing: Which Program is for Your Family?
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Even though it may seem like it sometimes, there are not as many loan programs as there are borrowers! We can help you select the refinance program that can fit your needs the best. Call us at 773-755-9200 to get started. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are getting lower mortgage payments and a lower rate your main refinance goals? Then your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage, even as interest rates rise. This kind of loan can be especially a good option if you aren't planning a move within the next 5 years or so. However, if you do see yourself selling your home before too long, an ARM with a small initial rate may be the ideal way to reduce your monthly payment. As a result of refinancing, your total finance charges can be higher over the life of the loan.
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? Your home needs new carpet; your daughter has gone to college and needs tuition; or you are taking your family on a cruise. In this case, you'll need to get a loan higher than the balance remaining of your present mortgage.With this goal, you will want You may not have an increase in your monthly payment, however, if you have had your current mortgage for a while, and/or your loan interest rate is high.
Do you hold other debt, perhaps with higher interest, that you'd like to consolidate? 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 home equity loans, student loans, or credit cards) means you can possible save several hundred dollars in your monthly budget.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while building up your equity more quickly? In that case, you'll need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Although your monthly payments will usually be more, you will save on interest; so your equity will build up faster. But, you could be able to make the change without a higher monthly payment if your longer term mortgage was closed a while back, and the remaining balance is low enough. You could even make it lower! To help you determine your options and the many benefits of refinancing, please call us at
773-755-9200. We are here for you.
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