Refinancing: Which Loan Program is for You?

There are not as many loan program choices as there are borrowers, but sometimes it feels like it! Call us at (303) 228-2254 and we will work with you to qualify you for the right refinance program for your needs. There are some general questions to ask yourself while you consider the options.

Reducing Your Monthly Payments

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. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even as interest rates rise. This kind of loan is particularly a wise idea if you don't think you'll be moving within the next 5 years or so. On the other hand, if you can see yourself moving in the near future, an adjustable rate mortgage with a low initial rate might be the best way to lower your monthly payments.

Refinancing to Cash Out

Is "cashing out" your main reason for your refinance? Maybe you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. Then you want to apply for a loan higher than the balance remaining on your current mortgage loan.Then you'll You will be looking for a loan for more than the remaining balance of your existing mortgage in this case. However, if your interest rate is currently high and you have held it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.

Consolidating Debt

Maybe you'd like to pull out a portion of the home equity (cash out) to use toward other debt. If you have enough home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a chunk of money each month.

Building up Equity Faster

Are you dreaming of paying your loan off more quickly, while building up your equity more quickly? If this is your goal, your refinance mortgage can change you to a loan program with a short, for example: a 15 year loan. You will be paying less interest and increasing your equity more quickly, even though your mortgage payments will likely be higher than they were. But, you might be able to make the change without a bigger monthly mortgage payment if your longer term loan was closed a while ago, and the balance remaining is low enough. You could even make it lower! To help you understand your options and the many benefits of refinancing, please call us at (303) 228-2254. We are here for you.

Curious about refinancing your home? Call us: (303) 228-2254.

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