Which Refinancing Option is Right for You?
There aren't as many loan program choices as there are applicants, but it feels like it sometimes! Call us at 720-598-8300 and we will work with you to qualify you for the perfect refinance loan for your financial situation. There are several things to keep in mind as you look at the choices.
Lowering Your Payments
Are achieving better monthly payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even as interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a good loan option. On the other hand, if you can see yourself selling your home in the near future, an ARM with a low initial rate could be the ideal way to reduce your monthly payment.
Refinancing to Cash Out
Is "cashing out" your main reason for refinancing? It could be you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you will need to get a loan higher than the balance remaining of your present mortgage loan.Then you will You'll need to find a loan for a higher amount than the current balance with your existing mortgage in that case. You may not increase your monthly payemnt, however, if you've had your current mortgage for a number of years, and/or your loan interest rate is high.
Perhaps you hope to cash out some of the equity in your home (cash out) to use toward other debt. If you have a fair amount of home equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) could help save you a lot of money each month.
Switching to a Shorter Term Loan
Do you need to build up home equity more quickly, and have your mortgage paid off sooner? If this is your plan, the refinance can change you to a mortgage loan program with a shorter term, like a 15 year loan. The payments will likely be more than they were with a long-term mortgage loan, but in exchange, that you will pay considerably less interest and will build up equity quicker. But, you could be able to make the change without a higher monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the remaining balance is small. You could even make it lower! To help you figure out your options and the multiple benefits of refinancing, please call us at 720-598-8300. We are here for you.
Curious about refinancing? Call us at 720-598-8300.