Choosing the best refinance option
What are your reasons for refinancing? The information below may help you narrow down your choices. The number of refinance options available can be overwhelming. We can guide you to choose the refinance loan program that can fit your financial situation the best. Call us at (303) 727-2466 to get things started.
Reducing Your Monthly Payments
Are getting better mortgage payments and a lower rate your main refinance goals? In that case, getting a low, fixed-rate loan could be a wise option for you. Maybe you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your loan, even if interest rates rise. If you aren't planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a wise loan option. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced mortgage payments.
Are you wanting to cash out some of your home equity with your refinance? Your house needs renovating; your daughter has gone to University and needs tuition; or you are planning a special vacation. With this in mind, you want to find a loan for more than the balance remaining of your current mortgage loan. However, if your mortgage rate is currently high and you've had it for quite a few years, you may be able to achieve your goals without making your mortgage payments higher.
Consolidating Your Debt
Do you want to cash out some home equity to consolidate additional debt? Great plan! If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars in your budget each month.
Getting a Shorter Term Loan
Do you plan to build up home equity quicker, and pay off your mortgage sooner? You should consider refinancing with a short-term loan, like a 15-year mortgage loan. You will be paying less interest and growing your equity more quickly, although your monthly payments will usually be bigger than you have been paying. On the other hand, if your current long-term loan has a low remaining balance, and was closed a while ago, you may even be able to make the move without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at 303.727.2466. We would love to help you reach your goals!