Refinancing: Which Option is for You?
When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than applicants! Call us at (303) 228-2254 and we can work with you to qualify you for the best refinance loan program to fit your financial situation. There are some general questions to ask yourself as you consider the options.
Making Your Payments Lower
Are achieving better monthly payments and an improved rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage loan, even when interest rates rise. This kind of loan is particularly a wise idea if you aren't expecting a move within the next five years or so. However, an ARM with a initial low payment may be a wiser way to reduce your payments if you expect to move in the near future.
Refinancing to Cash Out
Are you wanting to cash out some of your equity in your refinance? It could be you want to update your kitchen, pay your child's college tuition bill, or go on a special family vacation. Then you want to apply for a loan above the balance remaining on your present mortgage loan.Then you will You will need to apply for a loan for a bigger amount than the current balance of your existing mortgage in this case. However, if your mortgage rate is currently high and you've had it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you hold other debt, maybe with a high interest rate, that you want to consolidate? If you have built up some home equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a lot of cash each month.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off sooner, while building up your equity quicker? In that case, you want to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. Although your monthly payment amount will usually be more, you will be paying less interest; so your equity amount will rise up faster. However, if you've held your current 30 year mortgage for a number of years and the remaining balance is relatively low, you may be do this without increasing your 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? Give us a call at (303) 228-2254.