Which Refinancing Loan Program is Best for You?

Although it may seem like it at times, there aren't as many refinance loan options as there are applicants! Contact us at 720-598-8300 and we will match you with the refinance program that is best for your needs. In the interest of looking at your options, you need to think about what you want to achieve with your refinance.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a good option for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low interest rate for the term of your loan. If you plan to stay 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 sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.

Getting Out some Cash

Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? Perhaps you need to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. In this case, you want to find a loan for more than the balance remaining of your existing mortgage.So you will want to find a loan program for a bigger amount than the balance remaining on your current mortgage loan. You might not have an increase in your monthly payemnt, though, if you've had your current mortgage loan for a while, and/or your interest rate is high.

Consolidating Your Debt

Do you want to cash out some equity to consolidate other debt? Good idea! If you have enough equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a chunk of cash every month.

Paying it off Sooner

Are you hoping to fatten up your equity faster, and pay off your mortgage sooner? If this is your goal, your refinance loan can move you to a mortgage loan program with a short, like a 15 year loan. Even though your monthly payment amount will usually be more, you will be paying less interest; so your equity will build up faster. But, you may be able to switch without much increase in your monthly payment if your long term loan was closed a while ago, and the remaining balance 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 are here for you.

Want to know more about refinancing? Give us a call: 720-598-8300.

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