Choosing a Refinancing Loan
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than applicants! Contact us at 719-425-2226 and we can match you with the refinance program that fits you best. There are some general questions to ask yourself while you consider the options.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan might be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage, even as interest rates rise. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a wise loan option. However, an ARM with a initial low payment could be a smarter way to lower your payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Your home needs renovating; your son has gone to college and needs tuition; or you are planning a special vacation. Then you'll want to find a loan for more than the remaining balance on your current mortgage.Then you'll want If you've had your current mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.
Do you want to cash out some equity to consolidate other debt? Great idea! If you hold some debt with high interest (like credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Do you want to build up home equity more quickly, and have your mortgage paid off faster? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. The monthly payments will probably be more than they were with your longer term mortgage loan, but in exchange, that you will pay substantially less interest and can build up equity more quickly. But, you could be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the remaining balance is low. You may even make it lower! To help you understand your options and the many benefits of refinancing, please contact us at 719-425-2226. We are here for you.
Curious about refinancing? Call us: 719-425-2226.