Which Refinancing Program is Best for You?
There are not as many refinance loan programs as there are borrowers, but sometimes it feels like it! Call us at (303) 228-2254 and we will match you with the loan program that best fits you. There are several things to keep in mind as you consider your options.
Reducing Your Monthly Payments
Are achieving reduced monthly payments and a lower rate your main refinance goals? Then a low, fixed rate loan may be your best option. Perhaps you are currently 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 interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you plan to live in your home for at least five more years, a fixed rate loan may be an especially good choice for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Getting Out some Cash
Is "cashing out" your main reason for refinancing? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. So you'll want to apply for a loan for more than the balance remaining on your existing mortgage loan.So you You will be looking for a loan for a higher amount than the balance remaining on your existing mortgage in this case. You might not have an increase in your mortgage payemnt, though, if you've had your existing mortgage for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate additional debt? Good idea! If you have some debt with higher interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Paying it off Faster
Do you plan to build up equity quicker, and have your mortgage paid off faster? Consider refinancing with a shorterterm loan, such as a 15-year mortgage. Even though your monthly payment amount will likely be more, you will be paying less interest; so your home equity will rise up faster. But, you could be able to switch without much increase in your monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is low enough. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please call us at (303) 228-2254. We can help you reach your goals!
Curious about refinancing your home? Call us at (303) 228-2254.