Refinancing: Which Loan Program is for You?
The number of refinance options available to borrowers is truly breathtaking. Contact us at 719-425-2226 and we can work with you to qualify you for the perfect refinance loan to fit your financial situation. In order to review your choices, you need to consider your goals for your refinance.
Lowering Your Payments
Are getting lower mortgage payments and a lower rate your main reasons for refinancing? If so, your best choice may be a low fixed-rate loan. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you close a fixed rate mortgage, you lock in the low interest rate for the term of your loan. This can be particularly a wise option if you don't think you will sell your home within the next 5 years or so. However, an ARM with a low intitial payment could be a smarter way to reduce your payments if you expect to move within the near future.
Are you wanting to cash out some of your home equity with your refinance? It could be you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. So you will need to find a loan higher than the remaining balance of your current mortgage.In this case, you'll want You might not increase your mortgage payemnt, though, if you've had your existing mortgage loan for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with a higher interest rate, that you want to consolidate? If you have any debt with steep interest (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you planning to fatten up your home equity faster, and pay your mortgage off sooner? You should consider refinancing with a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and growing your equity faster, even though your monthly payments will usually be more than they were. But, you could be able to make the change without a bigger monthly mortgage payment if your long term mortgage loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you determine your options and the multiple benefits of refinancing, please contact us at 719-425-2226. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at 719-425-2226.