Which Refinancing Program is Right for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance programs than borrowers! We can guide you to locate the refinance program that can fit your situation the best. Contact us at 720-598-8300 to get started. In the interest of looking at your choices, you should consider what you want to achieve with the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are planning to live in your home for at least five more years, a fixed rate mortgage may be a particulary good fit for you. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get lower mortgage payments.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? Maybe you're dreaming of a cruise; you need to pay college tuition for your child; or you are updating your kitchen. With this in mind, you will want to find a loan higher than the balance remaining on your current mortgage loan.Then you'll want If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment bigger.
Perhaps you hope to cash out some of the equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars monthly.
Building up Equity More Quickly
Are you dreaming of paying your loan off faster, while building up your home equity more quickly? If this is your hope, your refinance can switch you to a loan program with a short, for example: a 15 year loan. The payments will likely be higher than with your long-term loan, but in exchange, that you will pay considerably less interest and will build up equity quicker. However, if you have held your current 30-year loan for a long time and the remaining balance is rather low, you could be do this without increasing your monthly payment — it's even possible to save! To help you figure out your options and the many benefits in refinancing, please contact us at 720-598-8300. We are here for you.
Want to know more about refinancing? Call us at 720-598-8300.