Refinancing: Which Loan Program is for You?

There are not as many loan programs as there are borrowers, but sometimes it seems like it! Call us at (303) 862-7760 and we can help you qualify for the best refinance loan for your financial situation. There are several things to have in mind while you consider your options.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low interest rate for the life of your loan. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise choice. However, if you can see yourself moving before too long, an adjustable rate mortgage with a small initial rate may be the best way to lower your monthly payments.

Refinancing to Cash Out

Is your refinance goal mainly to "cash out" some home equity? It could be you're dreaming of a cruise; you need to pay college tuition for your child; or you are updating your kitchen. So you want to apply for a loan for more than the remaining balance of your present mortgage.So you will You'll be looking for a loan for a bigger amount than the remaining balance of your present mortgage in this case. However, if your mortgage rate is high now and you've had it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.

Consolidating Your Debt

Do you hold other debt, maybe with a high interest rate, that you need to consolidate? If you hold some higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the equity built up to make it work.

Building up Equity More Quickly

Do you want to build up equity more quickly, and have your mortgage paid off faster? In that case, you need to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. The mortgage payments will probably be higher than they were with a long-term mortgage, but the pay-off is: that you will pay quite a bit less interest and can build up equity more quickly. On the other hand, if your existing long-term mortgage has a small balance remaining, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you understand your options and the many benefits in refinancing, please call us at (303) 862-7760. We are here for you.

Want to know more about refinancing? Give us a call: (303) 862-7760.