Selecting a Refinancing Loan
There are not as many loan options as there are borrowers, but at times it feels like it! Call us at (303) 228-2254 and we can match you with the loan program that best fits you. In the interest of looking at your options, you should list your goals for your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a loan in 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 aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise choice. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Are you refinancing primarily to pull out some of your equity for an infusion of cash? Your house needs improvements; your daughter has gone to University and needs tuition; or you have a special family vacation planned. In this case, you'll want to find a loan above the balance remaining of your present mortgage.So you will want If you've had your existing mortgage for a long time and/or have a loan with a high interest rate, you may be able to do this without making your monthly payment bigger.
Consolidating Your Debt
Maybe you'd like to pull out some of the equity (cash out) to put toward other debt. If you have a fair amount of home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a chunk of cash each month.
Getting a Shorter Term Loan
Do you plan to build up home equity quicker, and pay off your mortgage more quickly? Then, you want to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and growing your equity more quickly, although your monthly payments will generally be higher than you were paying. However, if you've had your existing thirty year loan for a long time and the remaining balance is rather low, you may be able to do this without raising your mortgage payment — you might even be able to save! To help you figure out your options and the many benefits of refinancing, please contact us at (303) 228-2254. We are here to help you reach your goals!
Want to know more about refinancing? Call us: (303) 228-2254.