Refinancing: Which Option is for You?
There are not as many refinance loan options as there are borrowers, but sometimes it feels like it! Call us at (720) 550-4235 and we can match you with the loan program that is best for your needs. What are your goals for your refinance loan? Considering in mind the information below will help you narrow your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then the best choice may be a low fixed-rate loan. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even when rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low rate for the term of your mortgage. If you are planning to stay in your home for about five more years, a fixed rate mortgage may be an especially good fit for you. On the other hand, if you can see yourself moving before too long, an adjustable rate mortgage with a small initial rate may be the ideal way to bring down your monthly payments.
Is your refinance goal mainly to "cash out" some home equity? Your home needs improvements; your daughter has been accepted to University and needs tuition money; or you are taking your family on a cruise. With this in mind, you'll need to qualify for a loan for more than the balance remaining of your present mortgage.Then you'll You will be looking for a loan for a bigger amount than the current balance of your current mortgage in this case. However, if your loan interest rate is high now and you've had it for a long time, you could be able to achieve your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you want to cash out some home equity to consolidate other debt? Yes you can! If you have some higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the home equity built up to make it work.
Getting a Shorter Term Loan
Are you hoping to fatten up your equity faster, and get your mortgage paid off sooner? If this is your wish, your refinance loan can move you to a loan program with a short, for example: a 15 year loan. Your mortgage payments will likely be higher than with the longer term loan, but the pay-off is: that you will pay substantially less interest and will build up equity more quickly. Conversely, if your current long-term mortgage loan has a low remaining balance, and was closed a number of years ago, you might be able to make the change without paying more each month. To help you understand your options and the numerous benefits of refinancing, please contact us at (720) 550-4235. We can help you reach your goals!
Curious about refinancing? Call us: (720) 550-4235.