Which Refinancing Option is Right for You?
There are a huge number of refinancing programs available to borrowers. Contact us at 719-357-6601 and we can match you with the loan program that is ideal for you. What do you hope to achieve with your refinance loan? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. 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 stays at a certain low rate for the term of your mortgage, even if interest rates rise. This is especially a wise option if you don't plan to move within the next 5 years or so. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower payments.
Getting Out some Cash
Is "cashing out" your primary purpose for your refinance? Your house needs renovating; your son has been accepted to college and needs tuition money; or you are taking your family on a cruise. So you'll want to get a loan above the remaining balance on your present mortgage.In that case, you'll You'll need to get a loan for a higher amount than the remaining balance of your present mortgage in that case. If you've had your current mortgage loan for quite a while and/or have a mortgage loan with high interest, you may be able to do this without making your monthly payment higher.
Do you have other debt, perhaps with higher interest, that you'd like to consolidate? If you have enough home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) may be able to save you a lot of cash every month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your equity faster? Then, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. You will be paying less interest and growing your equity faster, even though your payments will likely be bigger than they were. But, you could be able to switch without much increase in your monthly mortgage payment if your long term loan was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you determine your options and the numerous benefits of refinancing, please call us at 719-357-6601. We are here for you.
Want to know more about refinancing your home? Call us: 719-357-6601.