Selecting a Refinancing Option
There aren't as many refinance loan options as there are applicants, but at times it feels like it! Call us at (303) 650-9400 and we'll help you qualify for the perfect refinance program to fit your needs.
What do you hope to achieve with refinancing? The following will help you to narrow your choices.
Is lower payments and an improved rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan could be a good choice for you. Perhaps you are presently in a loan with a high, fixed interest rate, or a loan with which the interest rate varies--an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage must remain at the same low interest rate, unlike an ARM. A fixed rate loan can be particularly a good choice if you don't plan to sell your home within the next 5 years or so. On the other hand, if you can see yourself moving within a couple of years, an ARM with a low initial rate might be the ideal way to reduce your monthly payment.
Are you wanting to cash out some of your home equity with your refinance? It could be you need to pay for home improvements, consolidate your debts, take care of college tuition, or take your dream vacation. You can get cash out for almost any reason. With this in mind, you need to look for a loan higher than the remaining balance on your current mortgage. In this case, you will need to qualify for a higher loan amount than the current balance of your mortgage. However, if your loan interest rate is high now and you have held it for quite a few years, you could be able to achieve your goals without a rise in your monthly mortgage payment.
Consolidating Your Debt
Do you want to cash out some equity to consolidate additional debt? Good plan! If you have the home equity to make it work, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars monthly. The consolidation of just student loans can offer you a better rate than you would normally get in a "cash out" transaction.
Building up Equity
Are you dreaming of paying off your loan sooner, while building up your home equity faster? If this is your wish, you can move to a mortgage program with a shorter term, for example: a 25, 20, 15, or 10 year loan. Your mortgage payments will probably be higher than they were with the longer term loan, but you will pay substantially less interest and build up more equity. If you've held your current 30-year mortgage for a long time and the loan balance is rather low, you could be able to do this without raising your monthly mortgage payment — it's even possible to save!
We are here to help you figure out your options and the numerous benefits in refinancing!
Want to know more about refinancing? Call us at (303) 650-9400 or fill out the "Quick Quote" below.