Which Refinancing Option is Best for You?

There aren't as many refinance loan options as there are borrowers, but sometimes it seems like it! We can guide you to choose the refinance loan program that will fit your needs the best. Call us at (303) 443-5566 to begin the process. What are your reasons for your refinance loan? Keeping in mind the following will help you narrow your choices.

Making Your Payments Lower

Are getting reduced mortgage payments and a better rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the best option for you. If you have an ARM (Adjustable Rate Mortgage) or a loan that is coming due soon (balloon) or are paying mortgage insurance you may need to refinance. Even as interest rates rise, a fixed rate mortgage loan will remain at the same, unlike an ARM. This kind of loan can be particularly a wise idea if you don't expect to sell your home within the next 5 years or so. However, an ARM with a initial low payment could be a better way to reduce your monthly payments if you expect to move in the next few years.

Getting Out some Cash

Is your refinance goal primarily to "cash out" some home equity? Your home needs new carpet; your child has gone to college and needs tuition money; or you have a special family vacation planned. Then you will want to find a loan above the balance remaining of your existing mortgage. So you you'll be looking for a loan for a higher amount than the balance remaining on your present mortgage in that case. If you've had your current mortgage for a number of years and/or have a high interest mortgage, you might be able to do this without increasing your monthly payment.

Consolidating Debt

Do you want to cash out some home equity to consolidate other debt? Good plan! If you have any higher interest debts (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of home equity.

Building up Equity Faster

Are you dreaming of paying off your loan faster, while building up your home equity faster? In that case, you need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Even though your monthly payments will usually be more, you can be paying less interest; so your home equity will build up faster. On the other hand, if your current longer term mortgage loan has a low remaining balance, and was closed a number of years ago, you may even be able to make the move without paying more each month.