Refinancing: Which Loan Program is for You?
There are not as many refinance loan programs as there are borrowers, but at times it seems like it! Contact us at (303) 228-2254 and we can work with you to qualify you for the perfect refinance loan program for your needs. There are some general questions to ask yourself as you review your options.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? If so, your best choice may be a low fixed-rate loan. Perhaps you currently hold a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even as interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are expecting to live in your home for at least five more years, a loan with a fixed rate may be an especially good choice for you. However, if you can see yourself selling your home in the near future, an ARM with a low initial rate could be the ideal way to bring down your monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your equity with your refinance? Maybe you need to make home improvements, pay your child's college tuition bill, or go on a dream vacation. Then you'll want to find a loan above the remaining balance on your existing mortgage loan.Then you want to qualify for a loan for a higher amount than the balance remaining on your existing mortgage. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment bigger.
Do you hold other debt, perhaps with a higher interest rate, that you want to consolidate? If you have built up some equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a lot of money every month.
Switching to a Shorter Term Loan
Do you hope to build up equity quicker, and pay off your mortgage more quickly? Consider refinancing to a short-term loan, like a 15-year mortgage. You will be paying less interest and increasing your equity faster, even though your monthly payments will generally be higher than you have been paying. However, if you have had your existing thirty-year mortgage for a number of years and the remaining balance is somewhat low, you might be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits in refinancing, please call us at (303) 228-2254. We are here for you.
Curious about refinancing? Call us: (303) 228-2254.