Choosing a Refinancing Program
When you are overwhelmed with so many options, it may seem like there are even more loan programs than borrowers! We can help you select the loan program that can fit your financial situation the best. Contact us at (303) 228-2254 to get started. There are several things to have in mind as you review your options.
Making Your Payments Lower
Are achieving lower payments and an improved rate your main refinance goals? In that case, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you are currently in a mortgage with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This can be especially a good choice if you don't think you'll be selling your home within the next five years or so. On the other hand, if you can see yourself selling your home before too long, an ARM with a small initial rate could be the ideal way to bring down your monthly payments.
Getting Out some Cash
Is "cashing out" your primary purpose for your refinance? Your home needs new carpet; your daughter has been accepted to University and needs tuition; or you have a special family vacation planned. In this case, you need to find a loan higher than the balance remaining on your present mortgage loan.With this goal, you want However, if your loan interest rate is high now and you've held it for a long time, you could be able to achieve your goals without an increase in your mortgage payment.
Do you hold other debt, maybe with a higher interest rate, that you want to consolidate? If you have the equity in your home for it, taking care of other high interest debt (such as car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars in your budget each month.
Paying it off Sooner
Are you dreaming of paying off your loan more quickly, while building up your equity more quickly? You should consider refinancing to a short-term loan, like a 15-year mortgage loan. The monthly payments will probably be more than they were with your longer term mortgage, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. But, you might be able to switch without a bigger monthly payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you understand your options and the many benefits in refinancing, please call us at (303) 228-2254. We are here for you.
Want to know more about refinancing? Give us a call: (303) 228-2254.