Which Refinancing Option is Best for You?

There are an enormous number of refinancing options available to borrowers. We can help you locate the loan program that will fit your situation the best. Contact us at (303) 228-2254 to get started. In the interest of looking at your options, you can think about your goals for your refinance.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a good option for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even when interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a wise idea if you don't think you'll be selling your home within the next five years or so. However, an ARM with a initial low payment could be a wiser way to lower your mortgage payments if you plan on moving in the next few years.

Refinancing to Cash Out

Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Perhaps you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you will need to find a loan for more than the balance remaining on your present mortgage loan.With this goal, you You will be looking for a loan for more than the remaining balance on your current mortgage loan in that case. 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 making your monthly payment higher.

Consolidating Your Debt

Maybe you want to pull out a portion of the equity in your home (cash out) to put toward other debt. If you own any higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.

Switching to a Shorter Term Loan

Do you plan to build up home equity more quickly, and pay off your mortgage faster? You should consider refinancing with a shorterterm loan, often a 15-year mortgage loan. You will be paying less interest and growing your equity more quickly, although your mortgage payments will generally be higher than they were. Conversely, if your existing long-term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the move without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please call us at (303) 228-2254. We are here for you.

Curious about refinancing? Call us at (303) 228-2254.

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