Which Refinancing Loan Program is Right for You?

The number of refinance options available to borrowers is truly breathtaking. Contact us at (303) 300-8601 and we will match you with the loan program that is best for you. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.

Making Your Payments Lower

Are achieving reduced mortgage payments and an improved rate your main refinance goals? In that case, applying for a low, fixed-rate loan may be a good choice for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage loan, even when interest rates rise. If you aren't planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a great choice. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced monthly payments.

Refinancing to Cash Out

Are you planning to cash out some of your home equity with your refinance? Maybe you want to update your kitchen, take care of your college kid's tuition, or take your dream vacation. So you'll need to apply for a loan for more than the balance remaining on your existing mortgage.So you will want to need to qualify for a loan for a bigger amount than the remaining balance on your current mortgage loan. You might not increase your mortgage payment, however, if you've had your existing loan for a long time, and/or your loan interest rate is high.

Consolidating Your Debt

Maybe you want to pull out some of the equity in your home (cash out) to put toward other debt. If you have some debt with high interest (such as credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of equity.

Switching to a Shorter Term Loan

Are you planning to fatten up your equity faster, and get your mortgage paid off sooner? Consider refinancing to a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and increasing your equity faster, although your mortgage payments will usually be bigger than they were. But, you might be able to switch without a higher monthly payment if your longer term mortgage loan was closed a while back, and the balance remaining is somewhat low. You may even make it lower! To help you determine your options and the multiple benefits in refinancing, please contact us at (303) 300-8601. We are here to help you reach your goals!