Which Refinancing Option is Right for You?
When you are overwhelmed with all the options, it may seem as if there are even more refinance programs than applicants! We can help you choose the loan program that will fit your financial situation the best. Contact us at (303) 862-7760 to get started. What are your reasons for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even if interest rates rise. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can particularly be a wise option. However, an ARM with a initial low payment may be a better way to reduce your mortgage payments if you expect to move in the next few years.
Is your refinance goal primarily to "cash out" some home equity? Perhaps you need to update your kitchen, take care of your college kid's tuition, or take your family on a dream vacation. So you will need to find a loan above the remaining balance on your current mortgage.Then you will You'll need to qualify for a loan for a bigger amount than the current balance with your existing mortgage loan in that case. If you've had your existing mortgage for quite a while and/or have a mortgage loan whose interest rate is high, you might\could be able to do this without making your mortgage payment higher.
Do you want to pull out some equity to consolidate additional debt? Yes you can! If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars in your monthly budget.
Paying it off Sooner
Are you wanting to fatten your equity faster, and pay your mortgage off sooner? Then, you need to look into refinancing to a short term mortgage - like a fifteen-year mortgage loan. Your payments will probably be more than they were with a longer term mortgage, but in exchange, that you will pay substantially less interest and will build up equity more quickly. However, if you have had your current 30 year mortgage loan for a long time and the loan balance is relatively low, you could be able to do this without raising your mortgage payment — it's even possible to save! To help you understand your options and the many benefits in refinancing, please contact us at (303) 862-7760. We are here for you.
Want to know more about refinancing your home? Call us at (303) 862-7760.