Which Refinancing Option is Right for You?
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Even though it seems like it at times, there aren't as many refinance options as there are borrowers! Contact us at 303-477-3889 and we'll work with you to qualify you for the best refinance loan program to fit your situation. What do you hope to achieve with your refinance loan? Considering in mind the following will help you begin your decision process.
Reducing Your Monthly Payments
Are achieving reduced mortgage payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be the best option for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even when rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you set that low interest rate for the term of your loan. If you are expecting to stay in your home for at least five more years, a fixed-rate loan may be a particularly good choice for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower monthly payments. Refinancing may also cause your finance charges to be higher over the life of the loan.
Refinancing to Cash Out
Are you wanting to cash out some of your equity with your refinance? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. In this case, you'll want to find a loan higher than the remaining balance on your present mortgage.With this goal, you need You might not increase your monthly payment, though, if you've had your existing mortgage loan for a while, and/or your interest rate is high.
Perhaps you'd like to pull out some of the home equity (cash out) to put toward other debt. If you own some debt with steep interest (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Are you planning to fatten your equity faster, and pay your mortgage off sooner? If this is your hope, the refinance mortgage can switch you to a loan program with a short, such as a 15 year loan. Although your monthly payment amount will usually be more, you will be paying less interest; so your home equity will build up faster. But, you may be able to make the change without a higher monthly payment if your long term mortgage was closed a while back, and the balance remaining is low enough. You could even make it lower! To help you figure out your options and the numerous benefits in refinancing, please call us at
303-477-3889. We are here to help you reach your goals!
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