Which Refinancing Loan Program is Best for You?
There are a huge number of refinancing programs available to borrowers. Contact us at 720-598-8300 and we will work with you to qualify you for the best refinance loan for your situation. There are several things to keep in mind while you look at your options.
Reducing Your Monthly Payments
Are getting reduced mortgage payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be the right option for you. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even as interest rates rise, a fixed rate mortgage loan will remain at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is especially a good option if you don't expect to sell your home within the next 5 years or so. On the other hand, if you can see yourself selling your home within several years, an ARM mortgage with a small initial rate may be the best way to reduce your monthly payment.
Are you refinancing primarily to pull out some equity for an infusion of cash? Your home needs updating; your son has gone to University and needs tuition money; or you are taking your family on a cruise. In this case, you'll want to get a loan above the balance remaining of your existing mortgage loan.So you will want If you've had your existing mortgage for a number of years and/or have a mortgage loan with a high interest rate, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you have other debt, maybe with higher interest, that you want to consolidate? If you have a fair amount of home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a lot of cash each month.
Building up Equity More Quickly
Do you need to build up home equity more quickly, and pay off your mortgage sooner? If this is your plan, your refinance can move you to a loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and increasing your home equity faster, although your monthly payments will likely be more than you were paying. But, you might be able to make the change without a higher monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is low enough. You could even make it lower! To help you understand your options and the multiple benefits of refinancing, please call us at 720-598-8300. We are here for you.
Curious about refinancing your home? Give us a call: 720-598-8300.