Refinancing: Which Option is for You?
There aren't as many loan programs as there are borrowers, but it feels like it at times! We can guide you to select the refinance program that will fit your situation the best. Call us at 720-598-8300 to begin the process. What are your goals for your refinance loan? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good option may be a low fixed-rate loan. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage loan in which the interest rate 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. A fixed-rate mortgage is especially a good idea if you aren't expecting a move within the next 5 years or so. However, if you do see yourself selling your home within several years, an ARM with a low initial rate may be the best way to bring down your monthly payment.
Getting Out some Cash
Are you hoping to cash out some of your equity in your refinance? 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 want to find a loan for more than the remaining balance on your existing mortgage loan.With this goal, you'll need If you've had your existing mortgage for quite a while and/or have a loan with a high interest rate, you may be able to do this without increasing your mortgage payment.
Do you have other debt, perhaps with high interest, that you need to consolidate? If you hold any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Switching to a Shorter Term Loan
Are you planning to fatten up your home equity faster, and get your mortgage paid off sooner? In that case, you'll want to find out about refinancing to a short term mortgage - for example, a fifteen-year loan. Although your monthly payments will likely be more, you can be paying less interest; so your equity will rise up faster. But, you may be able to switch without much increase in your monthly payment if your long term mortgage loan was closed a while back, and the balance remaining is low enough. You may even make it lower! To help you understand your options and the numerous benefits of refinancing, please call us at 720-598-8300. We will help you reach your goals!
Curious about refinancing your home? Call us: 720-598-8300.