Which Refinancing Loan Program is Right for You?

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Although it seems like it at times, there are not as many refinance loan programs as there are applicants! Call us at 970-513-0934 and we will work with you to qualify you for the perfect refinance loan to fit your situation. There are several questions to ask yourself while you review the choices.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage loan, even when interest rates rise. If you expect to stay in your home for at least five more years, a loan with a fixed rate may be an especially good fit for you. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate to get reduced mortgage payments. Due to refinancing, your total finance charges may be higher over the life of the loan.

Cashing Out

Are you wanting to cash out some of your equity in your refinance? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you plan to renovate your home. So you need to find a loan for more than the remaining balance of your existing mortgage.So you'll want to find a loan for a higher amount than the balance remaining on your current mortgage loan. You may not increase your monthly payment, however, if you've had your current mortgage loan for a long time, and/or your interest rate is high.

Debt Consolidation

Do you want to pull out some of your equity to consolidate additional debt? Yes you can! If you have the home equity for it, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars a month.

Switching to a Shorter Term Loan

Do you hope to build up equity quicker, and pay off your mortgage more quickly? If this is your hope, your refinance loan can switch you to a mortgage program with a shorter term, for example: a 15 year loan. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will generally be bigger than they were. On the other hand, if your existing longer term mortgage loan has a low balance remaining, and was closed a while ago, you might be able to make the switch without paying more each month. To help you understand your options and the many benefits in refinancing, please call us at 970-513-0934. We will help you reach your goals!