Selecting a Refinancing Option
Even though it may seem like it sometimes, there aren't as many refinance loan options as there are borrowers! We can help you choose the loan program that can fit your needs the best. Contact us at 719-425-2226 to begin the process. There are several questions to ask yourself as you look at the choices.
Lowering Your Payments
Are getting reduced mortgage payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even when rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in that low interest rate for the life of your loan. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good choice. On the other hand, if you do see yourself moving before too long, an ARM with a low initial rate could be the ideal way to bring down your monthly payment.
Getting Out some Cash
Are you planning to cash out some of your equity in your refinance? Your house needs updating; your daughter has gone to University and needs tuition; or you are planning a special vacation. Then you'll need to qualify for a loan higher than the balance remaining of your present mortgage loan.In that case, you will want to need to get a loan program for a bigger number than the balance remaining on your present mortgage loan. You might not have an increase in your mortgage payemnt, though, if you've had your existing mortgage loan for a while, and/or your interest rate is high.
Do you hold other debt, maybe with a high interest rate, that you'd like to consolidate? If you have the equity in your home to make it work, taking care of other high interest debt (for example: credit cards, home equity loans, or car loans) means you can possible save several hundred dollars monthly.
Getting a Shorter Term Loan
Are you hoping to fatten your equity faster, and pay off your mortgage sooner? You should consider refinancing with a short-term loan, often a 15-year mortgage loan. The monthly payments will probably be higher than with your longer term mortgage loan, but the pay-off is: that you will pay substantially less interest and will build up equity quicker. But, you may be able to make the change without a higher monthly mortgage payment if your longer term loan was closed a while back, and the balance remaining is small. You may even make it lower! To help you understand your options and the numerous benefits of refinancing, please call us at 719-425-2226. We can help you reach your goals!
Want to know more about refinancing? Call us at 719-425-2226.