Which Refinancing Program is Best for You?
There are not as many loan programs as there are applicants, but at times it seems like it! We can guide you to select the refinance loan program that will fit your needs the best. Call us at 719-331-6278 to get things started. There are some general questions to ask yourself while you consider the options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. This can be especially a wise idea if you aren't expecting a move within the next five years or so. However, an ARM with a low intitial payment may be a better way to lower your payments if you expect to move in the next few years.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Maybe you need to pay for home improvements, take care of your college kid's tuition, or take your family on a dream vacation. In this case, you want to get a loan above the balance remaining of your present mortgage loan.With this goal, you will need However, if your loan interest rate is currently high and you've held it for quite a few years, you may be able to accomplish your goals without making your mortgage payments increase.
Do you hold other debt, perhaps with high interest, that you want to consolidate? If you have enough home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a chunk of cash each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your equity faster? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. You will be paying less interest and increasing your equity more quickly, although your mortgage payments will generally be more than you have been paying. But, you may be able to make the change without much increase in your monthly payment if your longer term mortgage was closed a while ago, and the remaining balance is low. You could even pay less! To help you understand your options and the numerous benefits in refinancing, please call us at 719-331-6278. We are here to help you reach your goals!
Want to know more about refinancing your home? Give us a call: 719-331-6278.