What is a Refinance?
Save Money with a Refinance
With a refinance, you pay off your current loan with a new loan and restructure the mortgage to fit your needs. You could also save a considerable amount of money over the life of your loan and improve your overall financial outlook.
Refinance Highlights
Refinancing may be the right decision if your home value has significantly increased or the current interest rates are low. You may even be able to:
- Shorten your loan’s term to save even more money
- Refinance to a lower interest rate which might also lower your monthly payments
- Convert your adjustable-rate mortgage (ARM) to a fixed-rate loan which will keep your payments safe from possible interest rate increases
- Combine a first and second lien to a single loan for simplicity and savings
- Consolidate debt from higher interest rate credit cards or subordinate financed loans into one loan which may result in lower monthly payments
- Turn your home equity into cash
Refinance Programs
Cash-Out Refinance*
A cash-out refinance will allow you to take cash out of your home equity by replacing your current mortgage with a new loan that is more than the amount owed. This option can help you pay for major expenses like college tuition, debt or home improvements.
*Appraised property value may affect loan amount.
Adjustable-Rate Mortgage (ARM)
Typically adjustable-rate mortgages offer low introductory rates and payments that can change periodically after the initial fixed-rate period. An ARM could be the right choice for you if you plan on staying in your home for just a few years, you’re expecting a future pay increase, or the current interest rate on a fixed-rate mortgage is too high.
Fixed-Rate Mortgage
Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. You can select a 30-, 20- or 15-year term, but keep in mind lower term options have higher monthly payments, which means you are building home equity faster. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.
If you are interested in a refinance, please contact an Elite Group Mortgage Professional.
Other Loan Options
VA LOAN
Best if you are active-duty military, a veteran or military spouse.
Conventional
Best if you have good credit and a larger down payment to possibly receive lower rates with more flexible terms.
Jumbo
Best if you are wanting to purchase a property above the conforming loan limits ($453,100 in most areas).
Carson Paiz
Elite Group Mortgage Expert
Elite Group Mortgage offers home purchase and refinances loans. We are headquartered in Grand Junction, Colorado. Elite Group Mortgage is dedicated to helping you achieve your home financing goals. Equal Housing Opportunity.
