Which Refinancing Option is Best for You?

When you are overwhelmed with so many options, it may seem like there are even more loan programs than applicants! Contact us at 303-843-9171 x 14 and we will match you with the refinance loan program that fits you best. In the interest of looking at your choices, you'll need to think about your goals for the refinance.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the ideal option for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a loan with which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage, even if interest rates rise. If you aren't expecting to move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments. Refinancing may also cause your finance charges to be higher over the life of the loan.

Getting Out Some Cash

Are you refinancing mainly to "cash out" some home equity? Your house needs improvements; your daughter has gone to college and needs tuition; or you are planning a special vacation. So you will want to qualify for a loan above the balance remaining on your present mortgage loan.With this goal, you You'll need to qualify for a loan for more than the balance remaining on your existing home loan in this case. However, if your mortgage rate is high now and you have held it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.

Debt Consolidation

Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you own any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.

Building up Equity More Quickly

Are you hoping to fatten up your equity faster, and pay off your mortgage more quickly? Then, you want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will generally be more than you have been paying. On the other hand, if your current longer term mortgage has a small balance remaining, and was closed a while ago, you may be able to make the move without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please contact us at 303-843-9171 x 14. We will help you reach your goals!