Which Refinancing Loan Program is Right for You?

There aren't as many loan programs as there are applicants, but it seems like it sometimes! Contact us at (303) 369-5033 and we can match you with the refinance loan program that fits you best. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.

Reducing Your Monthly Payments

Are getting lower monthly payments and a lower rate your main reasons for refinancing? In that case, the best option might be a low fixed-rate loan. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the loan, even if interest rates rise. If you are planning to stay in your home for at least five more years, a loan with a fixed rate may be an especially good choice for you. On the other hand, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate may be the best way to reduce your monthly payment.

Cashing Out

Are you refinancing primarily to pull out some equity for an infusion of cash? It could be you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. Then you'll want to get a loan for more than the remaining balance of your current mortgage loan.In that case, you want to need to qualify for a loan for a higher number than the remaining balance on your present mortgage loan. You may not have an increase in your mortgage payment, though, if you've had your existing loan for a long time, and/or your interest rate is high.

Consolidating Your Debt

Do you want to pull out some of your equity to consolidate additional debt? Good plan! If you have any debt with steep interest (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have enough equity.

Getting a Shorter Term Loan

Are you wanting to fatten up your home equity faster, and pay your mortgage loan off more quickly? In that case, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Your monthly payments will likely be higher than with the longer term loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. On the other hand, if your current long-term loan has a low balance remaining, and was closed a while ago, you could be able to make the switch without paying more each month. To help you figure out your options and the many benefits in refinancing, please call us at (303) 369-5033 . We are here for you.