Choosing a Refinancing Loan
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There are a huge number of refinancing options available to borrowers. Contact us at 303-840-7424 and we can match you with the refinance loan program that best fits you. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the ideal loan program for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you set that low interest rate for the life of your loan. If you are planning to stay in your home for at least five more years, a fixed rate loan may be a particularly good option for you. However, an ARM with a initial low payment may be a better way to lower your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? Perhaps you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you plan to renovate your home. So you need to qualify for a loan higher than the remaining balance of your existing mortgage.So you'll You'll be looking for a loan for a higher amount than the balance remaining of your existing mortgage in that case. You might not have an increase in your monthly payment, though, if you have had your current mortgage loan for a long time, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with a high interest rate, that you need to consolidate? If you have the home equity to make it work, paying off other high interest debt (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your budget each month.
Building up Equity Faster
Do you plan to build up home equity more quickly, and pay off your mortgage more quickly? If this is your hope, the refinance loan can change you to a loan program with a short, for example: a 15 year loan. Although your mortgage payment amount will probably be more, you can save on interest; so your equity will rise up faster. But, you could be able to switch without a higher monthly payment if your longer term mortgage loan was closed a while back, and the balance remaining is low enough. You may even pay less! To help you determine your options and the many benefits in refinancing, please contact us at 303-840-7424. We are here for you.