Which Refinancing Loan Program is Best for You?
When you are overwhelmed with all the options, it may seem like there are even more loan programs than borrowers! Contact 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 consider the options.
Lowering Your Payments
Are achieving reduced payments and an improved rate your main reasons for refinancing? Then your best option might be a low fixed-rate loan. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This is particularly a good idea if you don't think you'll be moving within the next 5 years or so. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower payments.
Getting Out some Cash
Are you wanting to cash out some of your home equity in your refinance? Your home needs renovating; your daughter has gone to University and needs tuition money; or you are planning a special vacation. Then you'll want to find a loan above the remaining balance on your current mortgage.Then you'll need However, if your interest rate is currently high and you've held it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you hold some debt with steep interest (like 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.
Paying it off Faster
Are you planning to fatten up your home equity faster, and pay your mortgage off sooner? You should consider refinancing to a shorterterm loan, often a 15-year mortgage loan. The payments will probably be higher than they were with a longer term loan, but in exchange, that you will pay considerably less interest and will build up equity more quickly. However, if you have had your current thirty-year mortgage loan for a number of years and the loan balance is somewhat low, you could be do this without raising your monthly payment — you might even be able to save! To help you determine your options and the numerous benefits in refinancing, please call us at 719-425-2226. We are here for you.
Want to know more about refinancing? Give us a call at 719-425-2226.