Refinancing: Which Option is for You?

There aren't as many loan program choices as there are applicants, but at times it seems like it! Call us at (720) 633-5799 and we will help you qualify for the perfect loan program for your financial situation. There are some general questions to ask yourself as you look at the options.

Lowering Your Payments

Is your refinance primarily to lower your rate and monthly payments? Then the best choice could be a low fixed-rate loan. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage, even if interest rates rise. If you are not planning on moving in the near future (about 5 years), a fixed rate mortgage loan can especially be a good choice. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced monthly payments.

Cashing Out

Is "cashing out" your main purpose for refinancing? Maybe you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you want to look for a loan higher than the balance remaining on your present mortgage.With this goal, you'll want to find a loan for a higher number than the remaining balance on your current mortgage loan. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.

Consolidating Your Debt

Do you have other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have any debt with steep interest (like credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of home equity.

Paying it off Faster

Are you wanting to fatten your equity faster, and pay off your mortgage loan sooner? Consider refinancing to a short-term loan, such as a 15-year mortgage loan. Although your monthly payment amount will probably be increased, you will save on interest; so your equity will rise up faster. But, you may be able to make the change without a bigger monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is small. You could even make it lower! To help you figure out your options and the numerous benefits in refinancing, please contact us at (720) 633-5799. We will help you reach your goals!