Selecting a Refinancing Option
There are a huge number of refinancing programs available to borrowers. Contact us at 719-425-2226 and we can work with you to qualify you for the best refinance loan to fit your needs. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are achieving reduced mortgage payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest can vary. Even when interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you expect to stay in your home for at least five more years, a fixed rate loan may be an especially good choice for you. On the other hand, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate might be the ideal way to reduce your monthly payments.
Getting Out some Cash
Are you planning to cash out some of your home equity in your refinance? Your home needs new carpet; your daughter has gone to college and needs tuition money; or you are planning a special vacation. In this case, you will want to look for a loan above the balance remaining of your present mortgage loan.With this goal, you'll want If you've had your current mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you want to pull out some equity to consolidate additional debt? Yes you can! If you hold some debt with steep interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have the right amount of equity.
Switching to a Shorter Term Loan
Are you planning to fatten your equity faster, and get your mortgage paid off more quickly? In that case, you'll want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your equity faster, although your mortgage payments will likely be more than they were. However, if you've held your current 30 year mortgage for a long time and the remaining balance is rather low, you could be do this without raising your mortgage payment — you may even be able to save! To help you understand your options and the many benefits in 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.