Selecting a Refinancing Program
The huge number of refinance options available to borrowers is truly breathtaking. Call us at 719-425-2226 and we can match you with the refinance program that best fits you. There are some general questions to ask yourself as you look at your choices.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? In that case, your best option may be a low fixed-rate loan. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low rate for the term of your mortgage. A fixed-rate mortgage is especially a good option if you aren't planning a 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 mortgage payments.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Maybe you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. In this case, you need to find a loan for more than the remaining balance of your existing mortgage loan.Then you want to qualify for a loan for a higher amount than the remaining balance on your present mortgage loan. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Perhaps you hope to cash out some of the equity in your home (cash out) to use toward other debt. If you have 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 through your refinance, if you have enough home equity.
Building up Equity Faster
Are you dreaming of paying your loan off sooner, while beefing up your home equity faster? In that case, you want to look into refinancing to a short term mortgage loan - like a fifteen-year loan. You will be paying less interest and growing your equity more quickly, even though your mortgage payments will generally be bigger than you have been paying. But, you could be able to switch without much increase in your monthly payment if your longer term mortgage was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you figure out your options and the numerous benefits in refinancing, please call us at 719-425-2226. We will help you reach your goals!
Curious about refinancing? Call us at 719-425-2226.