Choosing a Refinancing Program

When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than applicants! We can help you choose the refinance program that can fit your financial situation the best. Call us at 303-523-7119 to begin the process. There are some general questions to ask yourself as you review your options.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good choice might be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage loan, even when interest rates rise. If you plan to stay in your home for about five more years, a fixed rate loan may be a particulary good option for you. However, an ARM with a low intitial payment could be a smarter way to reduce your payments if you see yourself moving in the next few years.

Getting Out some Cash

Is your refinance goal primarily to "cash out" some home equity? Perhaps you're dreaming of a cruise; you need to pay college tuition for your child; or you plan to renovate your home. With this in mind, you will need to look for a loan above the balance remaining of your current mortgage loan.In this case, you will You'll want to apply for a loan for a bigger amount than the balance remaining on your present mortgage in that case. If you've had your current mortgage for quite a while and/or have a loan with a high interest rate, you may be able to do this without increasing your mortgage payment.

Consolidating Your Debt

Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you have the home equity to make it work, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars per month.

Switching to a Shorter Term Loan

Are you planning to fatten up your equity faster, and pay your mortgage off sooner? Consider refinancing to a shorterterm loan, often a 15-year mortgage loan. You will be paying less interest and growing your equity more quickly, even though your monthly payments will likely be more than you were paying. On the other hand, if your current longer term mortgage loan has a small remaining balance, and was closed a while ago, you may even be able to make the change without paying more each month. To help you determine your options and the many benefits in refinancing, please call us at 303-523-7119. We are here for you.

Curious about refinancing your home? Call us: 303-523-7119.