Refinancing: Which Option is for You?
There aren't as many refinance loan options as there are applicants, but sometimes it feels like it! We can guide you to select the loan program that can fit your financial situation the best. Call us at 719-425-2226 to get things started. In order to review your choices, you'll need to determine what you want to achieve with the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan may be a wise choice for you. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage, even as interest rates rise. This kind of loan can be particularly a good choice if you don't expect to sell your home within the next 5 years or so. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get reduced monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your home equity with your refinance? Perhaps you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. Then you'll want to get a loan for more than the balance remaining of your present mortgage loan.In this case, you You will want to qualify for a loan for a higher amount than the balance remaining of your present mortgage loan in that case. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Consolidating Your Debt
Perhaps you hope to cash out a portion of the equity in your home (cash out) to use toward other debt. If you hold some higher interest debts (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you hoping to fatten your home equity faster, and get your mortgage paid off more quickly? If this is your plan, the refinance mortgage can change you to a mortgage program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, although your payments will likely be more than they were. However, if you've had your existing 30-year loan for a long time and the loan balance is relatively low, you could be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the many benefits in refinancing, please contact us at 719-425-2226. We are here for you.
Curious about refinancing your home? Call us at 719-425-2226.