Selecting a Refinancing Option

There are not as many refinance loan options as there are applicants, but at times it feels like it! Contact us at (303) 862-7760 and we will match you with the loan program that best fits you. What are your goals for refinancing? Considering in mind the following will help you begin your decision process.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are expecting to stay in your home for about five more years, a fixed rate mortgage may be an especially good fit for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced payments.

Getting Out some Cash

Are you wanting to cash out some of your home equity in your refinance? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you will want to find a loan above the remaining balance of your current mortgage.In that case, you want to find a loan for a bigger number than the balance remaining on your present mortgage. If you've had your current mortgage loan for a number of years and/or have a loan whose interest rate is high, you may be able to do this without increasing your monthly payment.

Consolidating Debt

Do you want to pull out some equity to consolidate other debt? Great plan! If you have the home equity for it, paying off other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars each month.

Paying it off Faster

Are you dreaming of paying off your loan more quickly, while beefing up your equity quicker? In that case, you'll want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. You will be paying less interest and increasing your home equity more quickly, even though your payments will generally be more than they were. However, if you've had your current thirty-year mortgage for a number of years and the remaining balance is rather low, you could be do this without raising your monthly payment — it's even possible to save! To help you understand your options and the numerous benefits in refinancing, please contact us at (303) 862-7760. We are here for you.

Want to know more about refinancing? Call us at (303) 862-7760.