Selecting a Refinancing Loan
When you are overwhelmed with all the options, it may seem like there are even more refinance programs than applicants! Contact us at 719-425-2226 and we can match you with the refinance program that best fits you. There are some general things to bear in mind as you review the options.
Reducing Your Monthly Payments
Are getting reduced monthly payments and an improved rate your main reasons for refinancing? If so, getting a low, fixed-rate loan may be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This kind of loan is especially a wise choice if you don't think you will move within the next five years or so. However, if you can see yourself moving in the near future, an adjustable rate mortgage with a low initial rate may be the best way to reduce your monthly payment.
Refinancing to Cash Out
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Maybe you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. So you want to get a loan for more than the remaining balance of your existing mortgage loan.So you will You'll need to find a loan for more than the balance remaining with your current mortgage in this case. 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 making your monthly payment higher.
Consolidating Your Debt
Do you have other debt, maybe with high interest, that you need to consolidate? If you have enough equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) could help save you a lot of money every month.
Getting a Shorter Term Loan
Are you planning to fatten up your equity faster, and get your mortgage paid off more quickly? Then, you'll want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. The payments will likely be more than with a longer term loan, but the pay-off is: that you will pay quite a bit less interest and will build up equity quicker. On the other hand, if your current long-term loan has a low balance remaining, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at 719-425-2226. We are here for you.
Curious about refinancing your home? Give us a call at 719-425-2226.