Choosing a Refinancing Option
The huge number of refinance options available is truly breathtaking. Call us at (303) 228-2254 and we will match you with the loan program that is best for you. What are your reasons for refinancing? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, the best option may be a low fixed-rate loan. Maybe you now hold a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even when rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in that low interest rate for the term of your loan. If you aren't expecting to move in the near future (about 5 years), a fixed-rate mortgage can especially be a wise choice. On the other hand, if you do see yourself moving before too long, an ARM with a low initial rate may be the ideal way to lower your monthly payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. With this in mind, you need to get a loan for more than the balance remaining on your current mortgage loan.With this goal, you will need You might not increase your monthly payemnt, though, if you have had your existing mortgage for a number of years, and/or your interest rate is high.
Perhaps you want to pull out some home equity (cash out) to put toward other debt. If you have enough equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a lot of money every month.
Paying it off Sooner
Are you dreaming of paying off your loan faster, while building up your home equity more quickly? Then, you'll want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. The mortgage payments will probably be higher than they were with a longer term mortgage, but in exchange, that you will pay considerably less interest and can build up equity more quickly. But, you may be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while back, and the balance remaining is somewhat low. You may even pay less! To help you understand your options and the numerous benefits of refinancing, please contact us at (303) 228-2254. We can help you reach your goals!
Curious about refinancing? Give us a call: (303) 228-2254.