Choosing a Refinancing Program
There are not as many refinance loan programs as there are borrowers, but at times it seems like it! Call us at 720-598-8300 and we can match you with the loan program that is best for your needs. There are several questions to ask yourself as you consider your options.
Lowering Your Payments
Are getting reduced mortgage payments and a better rate your main refinance goals? If so, getting a low, fixed-rate loan might be a wise option for you. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set that low interest rate for the term of your loan. A fixed-rate mortgage is particularly a wise option if you don't think you'll be moving within the next five years or so. On the other hand, if you do see yourself moving in the near future, an ARM mortgage with a small initial rate may be the best way to lower your monthly payment.
Is "cashing out" your primary reason for refinancing? Maybe you need to make home improvements, take care of your college kid's tuition, or go on a dream vacation. With this in mind, you'll want to find a loan for more than the balance remaining on your existing mortgage loan.With this goal, you'll want to need to find a loan program for a higher number than the balance remaining on your current mortgage loan. If you've had your current mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you want to cash out some of your home equity to consolidate additional debt? Yes you can! If you have the home equity to make it work, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while building up your equity faster? You should consider refinancing to a short-term loan, such as a 15-year mortgage loan. Even though your mortgage payment amount will probably be increased, you can be paying less interest; so your home equity will rise up faster. On the other hand, if your existing longer term mortgage loan has a small balance remaining, and was closed a while ago, you may even be able to make the change without paying more each month. To help you understand your options and the numerous benefits of refinancing, please contact us at 720-598-8300. We would love to help you reach your goals!
Want to know more about refinancing? Call us at 720-598-8300.