Choosing a Refinancing Program

There are not as many loan program choices as there are borrowers, but it feels like it at times! Contact us at (303) 931-7879 and we can work with you to qualify you for the right refinance loan program to fit your situation. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a good choice for you. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your 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 particularly be a good loan option. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower monthly payments.

Refinancing to Cash Out

Is your refinance goal mainly to "cash out" some home equity? Maybe you're dreaming of a cruise; you have to pay college tuition for your child; or you are updating your kitchen. In this case, you will need to find a loan higher than the remaining balance on your present mortgage loan.So you will need However, if your interest rate is currently high and you've held it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.

Debt Consolidation

Do you hold other debt, maybe with higher interest, that you'd like to consolidate? If you own some debt with high interest (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.

Paying it off Sooner

Do you hope to build up home equity quicker, and have your mortgage paid off faster? If this is your hope, the refinance can switch you to a loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, although your mortgage payments will likely be more than they were. But, you might be able to switch without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You may even make it lower! To help you figure out your options and the many benefits of refinancing, please contact us at (303) 931-7879. We are here for you.