Which Refinancing Option is Best for You?

There are not as many loan programs as there are borrowers, but it feels like it sometimes! We can help you select the loan program that will fit your financial situation the best. Contact us at (303) 862-7760 to get started. There are several questions to ask yourself while you consider your options.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan might be a good option for you. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage, even as interest rates rise. If you are planning to live in your home for at least five more years, a fixed rate loan may be a particulary good choice for you. However, an ARM with a initial low payment could be a better way to reduce your mortgage payments if you expect to move in the next few years.

Cashing Out

Are you hoping to cash out some of your equity in your refinance? Your house needs new carpet; your daughter has been accepted to University and needs tuition; or you are planning a special vacation. So you need to qualify for a loan higher than the remaining balance of your current mortgage loan.With this goal, you will want to qualify for a loan for a bigger number than the remaining balance on your existing mortgage loan. However, if your mortgage rate is high now and you've had it for a long time, you could be able to achieve your goals without an increase in your mortgage payment.

Consolidating Your Debt

Perhaps you'd like to cash out some equity (cash out) to put toward other debt. If you have enough equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of cash every month.

Building up Equity Faster

Are you dreaming of paying your loan off sooner, while beefing up your home equity faster? Consider refinancing to a shorterterm loan, like a 15-year mortgage. You will be paying less interest and growing your equity more quickly, although your mortgage payments will generally be bigger than you have been paying. However, if you have had your current thirty year mortgage loan for a number of years and the loan balance is somewhat low, you could be able to do this without increasing your monthly payment — it's even possible to save! To help you understand your options and the multiple benefits of refinancing, please contact us at (303) 862-7760. We are here for you.

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