Which Refinancing Option is Right for You?
Although it seems like it sometimes, there are not as many loan options as there are applicants! Call us at 720-598-8300 and we will match you with the refinance program that fits you best. In the interest of looking at your choices, you will need to list what you want to achieve with the refinance.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, the best choice might be a low fixed-rate loan. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage will remain at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can especially be a great choice. However, if you do see yourself moving within several years, an adjustable rate mortgage with a small initial rate could be the best way to bring down your monthly payment.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some equity for an infusion of cash? Perhaps you want to make home improvements, pay your child's college tuition bill, or go on a special family vacation. In this case, you'll need to qualify for a loan for more than the remaining balance on your present mortgage.Then you will You will be looking for a loan for a higher amount than the remaining balance with your existing mortgage loan in that case. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you want to cash out some equity to consolidate other debt? Good plan! If you have enough home equity, paying toward 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.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off faster, while beefing up your home equity faster? If this is your wish, your refinance can change you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and growing your home equity more quickly, even though your payments will likely be higher than they were. However, if you have had your existing thirty year mortgage loan for a number of years and the remaining balance is rather low, you could be do this without raising your monthly payment — you may even be able to save! To help you understand your options and the many benefits of refinancing, please contact us at 720-598-8300. We can help you reach your goals!
Want to know more about refinancing? Call us: 720-598-8300.