Which Refinancing Option is Right for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance programs than borrowers! Contact us at (303) 228-2254 and we will work with you to qualify you for the perfect refinance loan program for your financial needs. surveying your choices, you need to think about what you want to achieve with the refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal loan program for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage loan, even as interest rates rise. This can be especially a wise choice if you don't think you'll be moving within the next five years or so. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. So you want to find a loan above the remaining balance on your current mortgage.With this goal, you'll want You might not increase your mortgage payemnt, though, if you have had your current mortgage for a number of years, and/or your loan interest rate is high.
Consolidating Your Debt
Do you want to cash out a portion of your home equity to consolidate additional debt? Yes you can! If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars monthly.
Getting a Shorter Term Loan
Do you need to build up home equity quicker, and pay off your mortgage more quickly? In that case, you'll want to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Even though your mortgage payment amount will usually be more, you can save on interest; so your home equity will rise up faster. But, you may be able to switch without a higher monthly payment if your longer term mortgage was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you understand your options and the many benefits in refinancing, please contact us at (303) 228-2254. We are here for you.
Curious about refinancing? Give us a call: (303) 228-2254.