Refinancing: Which Program is for You?
The number of refinance options available to borrowers is truly breathtaking. Contact us at 720-598-8300 and we can match you with the refinance loan program that fits you best. What do you hope to achieve with refinancing? Considering in mind the information below will help you narrow your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a good choice for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage, even if interest rates rise. A fixed-rate mortgage is particularly a wise option if you aren't planning a move within the next 5 years or so. However, if you do see yourself moving within the next few years, an ARM with a low initial rate might be the ideal way to reduce your monthly payments.
Is your refinance goal primarily to "cash out" some home equity? It could be you want to pay for home improvements, take care of your college kid's tuition, or take a cruise. Then you'll want to qualify for a loan higher than the balance remaining on your existing mortgage loan.With this goal, you will need However, if your mortgage rate is currently high and you have held it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.
Perhaps you hope to pull out some of the equity (cash out) to put toward other debt. If you hold some debt with higher interest (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of equity.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while building up your home equity quicker? Then, you need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage loan. You will be paying less interest and growing your equity more quickly, although your payments will likely be higher than you have been paying. But, you could be able to make the change without a higher monthly mortgage payment if your longer term loan was closed a while ago, and the balance remaining is low enough. You could even make it lower! To help you understand your options and the multiple benefits in refinancing, please call us at 720-598-8300. We are here for you.
Want to know more about refinancing your home? Give us a call at 720-598-8300.