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The refinancing process may seem confusing and overwhelming, but with The Delgado Team at Guaranteed Rate, you’ve got a friend to help you along the way. Our team has been in the industry for nearly 30 years, meaning we’ve seen it all when it comes to refinancing. Some common reasons that homeowners decide to look into refinancing their home include:
- Reduce interest rate or monthly payments
- Get rid of an adjustable-rate loan
- Get rid of FHA mortgage insurance requirements
- Change in marital status
- Get better terms
- Pay off home quicker
- Extend repayment (from 15 to 20 or 30 year)
- Get cashback from home equity
Some things you should know about refinancing your home loan:
Sometimes homeowners hear the beneficial side of refinancing and jump right to looking for a mortgage broker who will oblige. However, you should always consider all the options and make a well-informed decision. Some of the things you should know about refinancing your home loan include:
- The refinanced loan replaces your current mortgage loan
- You are responsible for paying the original interest rate on the mortgage, but you can save money in APR and APY
- You must qualify, meeting the same requirements as the original loan
- You may get better terms if your circumstances, credit score, debt-to-income ratio, and ability to repay have improved. Conversely, you may not qualify for as good of terms if any of these things have negatively changed
- Consider your end-of-year tax impact of refinancing
- Know and understand your break-even point — the point at which the costs of refinancing have been covered by your monthly savings.
Of course, everyone’s situation is unique. We’ll sit down with you to examine both the benefits and drawbacks of refinancing, as well as to explain the process. By learning the basics of refinancing, you’ll be able to choose an option that makes sense for you. Refinancing may be beneficial if you didn’t get the best mortgage loan to begin with or your circumstances have changed. However, refinancing your Chicago home loan is not always the best route and could end up costing you more. That’s where the Delgado team comes in. We will help you assess the entire situation and make the best choice for you and your long-term goals.
Partner with us to get started.
If you want to know if now is the right time to refinance, turn to our team. Even if you’ve been unable to refinance in the past, the programs and rates surrounding refinancing are constantly changing. We may be able to find a solution. Our professionals are prepared to advocate for you and your needs. Call now to schedule your free initial consultation.