Selecting a Refinancing Option
There are not as many refinance loan programs as there are applicants, but it feels like it sometimes! Call us at 719-331-6278 and we will match you with the refinance loan program that is best for you. In the interest of looking at your options, you'll need to think about what you want to achieve with your refinance.
Making Your Payments Lower
Are achieving lower monthly payments and a better rate your main refinance goals? If so, your best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even when rates rise later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low rate for the term of your mortgage. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise option. However, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate may be the ideal way to lower your monthly payments.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? Your home needs new carpet; your son has been accepted to college and needs tuition money; or you have a special family vacation planned. Then you'll need to find a loan for more than the balance remaining of your present mortgage.So you will want If you've had your existing mortgage for a long time and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you have other debt, maybe with higher interest, that you need to consolidate? If you have built up some home equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of money every month.
Paying it off Faster
Do you hope to build up home equity quicker, and have your mortgage paid off faster? In that case, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. Your payments will probably be more than they were with a longer term mortgage, but in exchange, you will pay quite a bit less interest and can build up equity more quickly. Conversely, if your current long-term loan has a small remaining balance, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you figure out your options and the many benefits of refinancing, please call us at 719-331-6278. We are here for you.
Want to know more about refinancing your home? Give us a call: 719-331-6278.