Selecting a Refinancing Loan
There are a huge number of refinancing programs available to borrowers. Contact us at 719-357-6601 and we will work with you to qualify you for the perfect refinance loan for your financial needs. There are some general things to keep in mind as you look at your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? If so, your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the loan, even when interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a good choice. On the other hand, if you do see yourself selling your home before too long, an ARM with a low initial rate could be the ideal way to bring down your monthly payments.
Getting Out some Cash
Is "cashing out" your primary purpose for your refinance? Your house needs improvements; your son has gone to college and needs tuition money; or you are taking your family on a cruise. Then you'll want to get a loan above the balance remaining of your existing mortgage loan.With this goal, you will need You might not increase your mortgage payemnt, however, if you have had your current mortgage loan for a number of years, and/or your interest rate is high.
Maybe you'd like to pull out a portion of the home equity (cash out) to use toward other debt. If you have the home equity to make it work, paying off 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 several hundred dollars monthly.
Paying it off Faster
Do you want to build up equity quicker, and pay off your mortgage sooner? In that case, you want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. The mortgage payments will likely be higher than they were with the longer term mortgage, but the pay-off is: you will pay considerably less interest and can build up equity quicker. But, you might be able to make the change without much increase in your monthly payment if your longer term mortgage was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you figure out your options and the numerous benefits in refinancing, please call us at 719-357-6601. We will help you reach your goals!
Curious about refinancing your home? Give us a call at 719-357-6601.