Which Refinancing Program is Right for You?
Even though it may seem like it at times, there aren't as many loan programs as there are borrowers! We can help you locate the refinance program that can fit your situation the best. Call us at (303) 228-2254 to get started. In order to review your choices, you will need to think about what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are getting reduced mortgage payments and a better rate your main refinance goals? In that case, applying for a low, fixed-rate loan might be a wise choice for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a wise option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.
Are you hoping to cash out some of your home equity with your refinance? Maybe you need to make home improvements, pay your child's college tuition bill, or take a cruise. Then you will want to find a loan above the remaining balance on your existing mortgage loan.So you want to need to get a loan program for a higher number than the remaining balance on your existing mortgage. However, if your loan interest rate is high now and you have held it for quite a few years, you could be able to achieve your goals without making your monthly payments bigger.
Do you want to pull out some of your equity to consolidate other debt? Great plan! If you hold any higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of home equity.
Paying it off Sooner
Do you want to build up equity quicker, and have your mortgage paid off more quickly? If this is your plan, your refinance loan can move you to a mortgage program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your monthly payments will likely be bigger than they were. However, if you have held your existing 30-year mortgage for a number of years and the loan balance is somewhat low, you may be do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please contact us at (303) 228-2254. We can help you reach your goals!
Want to know more about refinancing? Call us at (303) 228-2254.