Which Refinancing Option is Best for You?

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When you are overwhelmed with so many choices, it may seem like there are even more loan programs than applicants! Contact us at 720-440-9741 and we'll work with you to qualify you for the right refinance loan program to fit your financial situation. There are several questions to ask yourself as you consider the options.

Lowering Your Payments

Are getting better payments and an improved rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan could be a good choice for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This kind of loan can be especially a wise idea if you don't think you'll be moving within the next five years or so. On the other hand, if you can see yourself selling your home within the next few years, an ARM mortgage with a low initial rate might be the best way to reduce your monthly payments.

Refinancing to Cash Out

Are you refinancing primarily to pull out some of your equity for an infusion of cash? It could be you need to pay for home improvements, take care of your college kid's tuition, or take a cruise. Then you will need to find a loan for more than the remaining balance of your present mortgage loan.Then you want to qualify for a loan program for a bigger number than the remaining balance on your existing mortgage. If you've had your current mortgage for a long time and/or have a mortgage loan with a high interest rate, you may be able to do this without increasing your mortgage payment.

Consolidating Your Debt

Perhaps you want to cash out some equity (cash out) to use toward other debt. If you have built up some equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a lot of money every month.

Getting a Shorter Term Loan

Are you planning to fatten your equity faster, and get your mortgage paid off more quickly? If this is your goal, the refinance loan can switch you to a loan program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your mortgage payments will usually be higher than they were. However, if you've held your existing thirty year mortgage loan for a long time and the loan balance is somewhat low, you could be able to do this without raising your mortgage payment — you may even be able to save! To help you determine your options and the numerous benefits of refinancing, please contact us at 720-440-9741. We will help you reach your goals!

Curious about refinancing? Give us a call: 720-440-9741.