Refinancing: Which Loan Program is for You?
Even though it seems like it at times, there aren't as many loan programs as there are borrowers! Call us at (303) 228-2254 and we will match you with the loan program that is ideal for you. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are achieving lower payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be the ideal loan program for you. Maybe you now hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage, even as interest rates rise. If you are planning to live in your home for at least five more years, a fixed rate mortgage may be an especially good choice for you. On the other hand, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate may be the best way to bring down your monthly payments.
Are you planning to cash out some of your home equity in your refinance? Your house needs updating; your son has gone to college and needs tuition; or you are taking your family on a cruise. So you'll want to qualify for a loan above the remaining balance on your present mortgage.Then you will want to qualify for a loan program for a bigger amount than the remaining balance on your current mortgage. You may not have an increase in your monthly payemnt, though, if you've had your existing mortgage loan for a number of years, and/or your interest rate is high.
Perhaps you hope to pull out some of the equity in your home (cash out) to use toward other debt. If you have a fair amount of equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.
Getting a Shorter Term Loan
Do you need to build up home equity quicker, and have your mortgage paid off sooner? If this is your plan, the refinance can switch you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your home 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 higher monthly mortgage payment if your longer term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even make it lower! To help you figure out your options and the numerous benefits in refinancing, please contact us at (303) 228-2254. We can help you reach your goals!
Curious about refinancing your home? Call us at (303) 228-2254.