Choosing a Refinancing Loan

The huge number of refinance options available to borrowers can be overwhelming. Call us at (303) 862-7760 and we will match you with the loan program that best fits you. In order to review your options, you will need to list your goals for your refinance.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan may be a good option for you. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the term of your mortgage. This can be especially a good option if you don't think you will sell your home within the next 5 years or so. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.

Getting Out some Cash

Is "cashing out" your primary reason for your refinance? It could be you're dreaming of a cruise; you need to pay college tuition for your child; or you plan to renovate your home. Then you will need to find a loan higher than the remaining balance of your present mortgage loan.In this case, you will want to need to get a loan program for a bigger amount than the balance remaining on your existing mortgage. However, if your interest rate is high now and you've held it for a long time, you may be able to accomplish your goals without an increase in your mortgage payment.

Debt Consolidation

Maybe you want to pull out some of the equity (cash out) to use toward other debt. If you have built up some home equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might help save you a chunk of money every month.

Switching to a Shorter Term Loan

Are you planning to fatten your equity faster, and pay off your mortgage sooner? Consider refinancing with a shorterterm loan, like a 15-year mortgage. Although your monthly payment amount will probably be more, you will be paying less interest; so your home equity will build up faster. However, if you've had your existing thirty-year loan for a number of years and the loan balance is relatively low, you may be do this without raising your mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at (303) 862-7760. We are here for you.

Curious about refinancing your home? Give us a call: (303) 862-7760.