Refinancing: Which Program is for You?

There are an enormous number of refinancing programs available to borrowers. We can guide you to find the loan program that can fit your situation the best. Contact us at 719-425-2226 to get things started. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in the low rate for the term of your loan. This kind of loan is particularly a wise idea if you don't expect to move within the next five years or so. However, an ARM with a low intitial payment could be a wiser way to reduce your mortgage payments if you see yourself moving in the near future.

Refinancing to Cash Out

Is "cashing out" your main purpose for your refinance? Perhaps you want to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. In this case, you want to apply for a loan above the balance remaining on your existing mortgage loan.Then you'll need However, if your interest rate is currently high and you have held it for quite a few years, you could be able to achieve your goals without making your mortgage payments increase.

Consolidating Debt

Perhaps you'd like to pull out some of the home equity (cash out) to put toward other debt. If you have the home equity to make it work, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars in your budget each month.

Getting a Shorter Term Loan

Are you planning to fatten your home equity faster, and get your mortgage paid off more quickly? In that case, you want to find out about refinancing to a short term mortgage - such as a fifteen-year loan. Even though your mortgage payment amount will usually be more, you can be paying less interest; so your equity will rise up faster. However, if you've had your current 30 year loan for a number of years and the loan balance is somewhat low, you could be do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at 719-425-2226. We are here for you.

Want to know more about refinancing your home? Call us at 719-425-2226.

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