Refinancing: Which Option is for You?

Even though it may seem like it sometimes, there are not as many loan programs as there are borrowers! Call us at 720-598-8300 and we can work with you to qualify you for the perfect refinance program for your financial situation. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan may be a wise option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your loan, even if interest rates rise. If you expect to stay in your home for about five more years, a fixed rate mortgage may be an especially good option for you. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower payments.

Cashing Out

Are you hoping to cash out some of your equity with your refinance? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. So you need to get a loan for more than the balance remaining on your present mortgage.Then you want to qualify for a loan program for a bigger amount than the remaining balance on your current mortgage loan. If you've had your current mortgage for a long time and/or have a mortgage loan with high interest, you may be able to do this without increasing your mortgage payment.

Consolidating Your Debt

Perhaps you want to cash out some equity (cash out) to use toward other debt. If you own any debt with steep interest (like credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough home equity.

Building up Equity More Quickly

Do you want to build up home equity more quickly, and have your mortgage paid off sooner? You should consider refinancing to a short-term loan, such as a 15-year mortgage loan. The mortgage payments will probably be higher than they were with your longer term mortgage, but in exchange, you will pay considerably less interest and can build up equity quicker. But, you might be able to switch without much increase in your monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you determine your options and the multiple benefits in refinancing, please contact us at 720-598-8300. We will help you reach your goals!

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

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