Choosing a Refinancing Loan
When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than applicants! Contact us at 719-331-6278 and we will work with you to qualify you for the right refinance loan for your financial needs. In the interest of looking at your choices, you should determine what you want to achieve with the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan may be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your loan, even as interest rates rise. This can be particularly a good option if you don't think you'll be moving within the next 5 years or so. However, an ARM with a initial low payment may be a wiser way to reduce your mortgage payments if you see yourself moving in the next few years.
Is "cashing out" your main reason for your refinance? Your house needs improvements; your son has been accepted to college and needs tuition money; or you are planning a special vacation. With this in mind, you will need to look for a loan for more than the balance remaining on your present mortgage loan.With this goal, you will want If you've had your current mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Maybe you'd like to pull out some of the home equity (cash out) to put toward other debt. If you have enough home equity, paying off other debt with higher interest that your home loan (credit cards or home equity loans, for example) may help save you a lot of money each month.
Switching to a Shorter Term Loan
Are you planning to fatten your home equity faster, and pay your mortgage off sooner? In that case, you'll want to look into refinancing to a short term mortgage - like a fifteen-year mortgage loan. You will be paying less interest and growing your home equity faster, although your payments will generally be bigger than they were. On the other hand, if your current longer term loan has a low balance remaining, and was closed a while ago, you may be able to make the switch without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at 719-331-6278. We will help you reach your goals!
Curious about refinancing your home? Give us a call: 719-331-6278.