Selecting a Refinancing Program
Even though it seems like it at times, there aren't as many loan programs as there are borrowers! Call us at 720-598-8300 and we can match you with the refinance loan program that fits you best. What are your reasons for refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best option for you. Maybe you are currently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise choice. However, if you do see yourself selling your home within the next few years, an ARM with a small initial rate could be the ideal way to reduce your monthly payment.
Refinancing to Cash Out
Is "cashing out" your primary purpose for refinancing? Perhaps you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you will want to find a loan above the balance remaining on your existing mortgage loan.Then you want However, if your interest rate is currently high and you have held it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.
Maybe you hope to cash out some equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you can possible save several hundred dollars per month.
Paying it off Sooner
Are you wanting to fatten up your equity faster, and pay off your mortgage loan sooner? If this is your goal, your refinance can move you to a loan program with a short, such as a 15 year loan. The monthly payments will probably be more than they were with a longer term loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. But, you might be able to switch without a bigger monthly payment if your long term mortgage loan was closed a while back, and the remaining balance is small. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please call 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.