Selecting a Refinancing Option
When you are overwhelmed with so many options, it may seem like there are even more loan programs than applicants! Call us at (303) 862-7760 and we can match you with the refinance program that is ideal for you. In the interest of looking at your options, you will need to list what you want to achieve with your refinance.
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. Perhaps you are currently 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 rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low interest rate for the life of your loan. A fixed-rate mortgage is especially a good idea if you aren't planning a move within the next five years or so. However, an ARM with a initial low payment may be a smarter way to lower your payments if you expect to move in the near future.
Refinancing to Cash Out
Are you refinancing primarily to "cash out" some home equity? Perhaps you want to update your kitchen, pay your child's college tuition bill, or go on a special family vacation. So you will need to apply for a loan higher than the balance remaining of your current mortgage loan.So you'll want You may not have an increase in your monthly payemnt, however, if you have had your existing mortgage for a long time, and/or your interest rate is high.
Perhaps you hope to cash out some of the home equity (cash out) to put toward other debt. If you hold any debt with high interest (like credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough home equity.
Paying it off Sooner
Do you need to build up home equity more quickly, and pay off your mortgage faster? Consider refinancing with a shorterterm loan, often a 15-year mortgage. Although your mortgage payments will usually be more, you can save on interest; so your equity amount will rise up faster. On the other hand, if your current longer term mortgage loan has a small balance remaining, and was closed a while ago, you may even be able to make the change without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at (303) 862-7760. We are here to help you reach your goals!
Curious about refinancing? Call us at (303) 862-7760.