Which Refinancing Option is Right for You?

The huge number of refinance options available to borrowers can be overwhelming. Call us at 303-471-4445 and we will match you with the refinance program that fits you best. In order to review your choices, you should list what you want to achieve with your refinance.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in the low interest rate for the life of your mortgage. A fixed-rate mortgage can be especially a wise idea if you don't think you'll be moving within the next five years or so. However, an ARM with a initial low payment may be a wiser way to lower your monthly payments if you see yourself moving within the near future.

Refinancing to Cash Out

Are you refinancing mainly to pull out some home equity for an infusion of cash? It could be you need to update your kitchen, take care of your college kid's tuition, or take a cruise. In this case, you'll need to find a loan above the remaining balance of your existing mortgage.With this goal, you need However, if your interest rate is high now and you've held it for a long time, you could be able to reach your goals without a rise in your mortgage payment.

Consolidating Debt

Perhaps you'd like to pull out a portion of the home equity (cash out) to put toward other debt. If you hold any higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the equity built up to make it work.

Building up Equity More Quickly

Are you dreaming of paying off your loan more quickly, while building up your equity quicker? You should consider refinancing with a short-term loan, like a 15-year mortgage loan. The monthly payments will probably be higher than with a longer term mortgage, but the pay-off is: you will pay quite a bit less interest and can build up equity more quickly. However, if you've held your existing 30-year loan for a number of years and the remaining balance is somewhat low, you might be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits in refinancing, please call us at 303-471-4445. We would love to help you reach your goals!