Refinancing: Which Program is for You?
There are not as many loan options as there are borrowers, but sometimes it feels like it! We can help you find the loan program that can fit your financial situation the best. Contact us at 720-598-8300 to get started. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, your best option could be a low fixed-rate loan. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in the low rate for the term of your mortgage. If you are planning to live in your home for at least five more years, a fixed-rate loan may be a particulary good option for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Getting Out some Cash
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Your home needs new carpet; your son has gone to University and needs tuition; or you are taking your family on a cruise. With this in mind, you will want to find a loan for more than the remaining balance of your existing mortgage loan.In that case, you need If you've had your current mortgage for a long time and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you have built up some equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) may be able to save you a chunk of cash each month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your equity more quickly? In that case, you'll want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, although your payments will generally be bigger than you have been paying. Conversely, if your current long-term mortgage loan has a low balance remaining, and was closed a while ago, you could be able to make the move 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 are here for you.
Want to know more about refinancing? Give us a call: 720-598-8300.