Refinancing: Which Program is for You?

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The number of refinance options available to borrowers can be overwhelming. We can help you choose the refinance program that will fit your financial situation the best. Contact us at 970-984-2766 to get started. What are your goals for refinancing? Keeping in mind the information below will help you narrow your choices.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low interest rate for the life of your mortgage. This can be particularly a wise idea if you don't think you'll be selling your home within the next five years or so. However, if you can see yourself moving before too long, an ARM with a small initial rate might be the ideal way to bring down your monthly payment. Due to refinancing, your total finance charges can be higher over the life of the loan.

Refinancing to Cash Out

Are you planning to cash out some of your home equity with your refinance? It could be you want to pay for home improvements, pay your child's college tuition bill, or go on a dream vacation. With this in mind, you will need to look for a loan above the remaining balance of your existing mortgage loan.Then you want You may not increase your monthly payment, though, if you have had your current mortgage for a number of years, and/or your interest rate is high.

Consolidating Debt

Do you hold other debt, perhaps with high interest, that you need to consolidate? If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars per month.

Switching to a Shorter Term Loan

Are you hoping to fatten your equity faster, and pay off your mortgage loan sooner? Consider refinancing with a short-term loan, such as a 15-year mortgage. Your monthly payments will likely be more than they were with your long-term loan, but in exchange, you will pay quite a bit less interest and will build up equity more quickly. However, if you've held your existing 30-year mortgage loan for a long time and the remaining balance is rather low, you may be do this without raising your monthly mortgage payment — you could even be able to save! To help you understand your options and the numerous benefits in refinancing, please contact us at 970-984-2766. We are here for you.