Refinancing: Which Option is for You?
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The huge number of refinance options available can be overwhelming. We can guide you to find the refinance program that can fit your needs a great. Contact us at (720) 317-2500 to get started. surveying your options, you will need to think about what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage loan, even as interest rates rise. This can be particularly a good idea if you aren't expecting a move within the next five years or so. On the other hand, if you do see yourself selling your home before too long, an adjustable rate mortgage with a low initial rate could be the ideal way to bring down your monthly payments.
Are you wanting to cash out some of your home equity with your refinance? Your home needs new carpet; your daughter has gone to University and needs tuition money; or you have a special family vacation planned. With this in mind, you need to find a loan above the balance remaining of your current mortgage.With this goal, you will You'll need to get a loan for a bigger amount than the remaining balance on your existing mortgage in this case. However, if your loan interest rate is currently high and you've held it for quite a few years, you could be able to achieve your goals without making your monthly payments increase.
Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Paying it off Faster
Are you wanting to fatten up your home equity faster, and get your mortgage paid off sooner? If this is your plan, the refinance loan can change you to a mortgage loan program with a short, such as a 15 year loan. Even though your monthly payments will usually be more, you can be paying less interest; so your equity amount will rise up faster. However, if you've had your existing 30 year mortgage for a number of years and the loan balance is relatively low, you may be do this without raising your mortgage payment — you may even be able to save! To help you determine your options and the numerous benefits in refinancing, please contact us at (720) 317-2500. We are here for you.
Curious about refinancing your home? Give us a call at (720) 317-2500.