What are the circumstances in which converting the equity in your home to cash is the most beneficial? Who is eligible for a cash-out refinance ...
What are the circumstances in which converting the equity in your home to cash is the most beneficial? Who is eligible for a cash-out refinance from their homes? Learn more about the Cash-Out Refinance options US Mortgages in Colorado has and if it's right for you.
What is Cash-Out Refinance?
One of the many benefits of home ownership is the ability to access the value of your home equity. When big expenses come into your life, there's no need for worry. Make your home equity work for you with Cash-Out Refinancing through US Mortgages.
First, let's define terms. Home equity is the current market dollar value of a home; your remaining mortgage payments. So, for example, if your home is currently worth $200,000 and you owe $50,000 on it, you have home equity of $150,000. With a cash-out refinance mortgage, we could offer as much as much as 80% of the equity in your home to you in cash for whatever you need. In the example we've included here, that means as much as $120,000 could be yours in cash, in as little as a few weeks.
What do people use Cash Out Refinance Loans for?
Even with the most careful of budgeting and family planning, sometimes unexpectedly large expenses land on your shoulders. If a big cost has proved difficult to pay, Cash-Out Refinance loans can help keep you afloat in the tumultuous sea of finance.
If you need to pay for college tuition, home repairs or other bills that just can't wait, refinance with cash out! A cash out refinance loan may be the best route for you to help your family meet their goals while improving your financial standing. And as always, US Mortgages gives you our guarantee that we will never advise any loan if it will not improve your current situation.
Being faced with an expense that you can't pay can be scary and stressful. With US Mortgages, you can regain peace of mind when you refinance with us, because you'll know that you're working with one of the top lenders. Contact US Mortgages online or by phone to learn more about Cash-Out Refinancing and if this or any of our other mortgage products are right for you.
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One of the most sought-after services that we offer at US Mortgages is the ability for our borrowers to consolidate their debt and build their ...
One of the most sought-after services that we offer at US Mortgages is the ability for our borrowers to consolidate their debt and build their credit simultaneously, all while paying a lower rate than they previously were! Not sure if you qualify because of credit? We can provide this service to a wide range of customers with varying financial situations. How are we able to offer this? Learn more about the Debt Consolidation and Credit Building we offer by reading further.
How does Denver Debt Consolidation help borrowers?
When it comes to finances, we believe that simplicity is a good thing. Making multiple payments, to multiple companies, every month is the opposite of simple. Debt Consolidation can add clarity to a murky financial situation, by consolidating your complicated debts into one easy payment. And when you chose US Mortgages as your lending partner, you'll know you're getting the best possible deal, because we will never advise a loan that doesn't benefit the borrower's current finances.
With the Debt Consolidation service offered by US Mortgages, borrowers take control of their financial situations. Rather than paying high interest rates to many different companies, you can leverage the equity in your home through refinancing. Through a Cash-Out Refinance loan, borrowers can pay off their high interest credit cards and other high interest bills. Then, there's only one payment for borrowers to deal with per month and it's a lower rate than what they were paying before.
When is it a good idea to consolidate debt in Denver?
Homeowners who have an amount of equity built up in their home can qualify for debt consolidation refinancing. It can also be a good idea if you plan to stay in your home for many years and if interest rates are lower now than when you first got your home loan.
We'll work with you to create a specific plan to take you out of debt, tailored to your unique financial situation. We understand that every client is different. Whether your credit is flawless, or so-so, there is a debt-resolution plan for you.
Say goodbye to confusing payments at inflated interest rates. Contact US Mortgages in Colorado to learn how to consolidate debt and how it can help you build your credit.
You have questions, we have answers
The time is now to take advantage of historically low interest rates, refinance your mortgage, improve your credit, maximize your monthly income, ...
The time is now to take advantage of historically low interest rates, refinance your mortgage, improve your credit, maximize your monthly income, and potentially save thousands over the years.
There are several ways US Mortgages decreases homeowners' monthly mortgage payment. If you've had a change in income or a new expense come into your life, lowering your mortgage payment can help tremendously. Trying to save money on your mortgage? If you're planning on being in your home for a long time, US Mortgages can lower your home loan payments, and interest rate! Learn how below.
How do I lower my monthly mortgage payment?
The easiest way to lower your home loan payment is by refinancing your home. Regardless of whether your original loan came from US Mortgages, or another lender, you can still refinance through us. This method will decrease your home loan payment and, in most cases, your interest rate as well. One way to lower your monthly mortgage payment is by extending the terms of the repayment of your loan. Depending on your financial situation, this may be the best move you can make, especially if you need an immediate change and plan to refinance later.
What other ways can I lower my monthly payment?
Some homeowners may qualify for the HARP program, which is a federal loan modification program geared towards those undergoing hardships and requires certain eligibility standards be met. If traditional home refinancing hasn't worked for you, even though you've been keeping up with your mortgage payments, a HARP loan can make your mortgage more manageable, and bring increased financial stability to your life. Another way homeowners can decrease their monthly mortgage payment is through getting rid of their private mortgage insurance payments, or PMI. Some mortgages require PMI if the down payment made on the mortgage is less than 20% of the value of the home. If you've gained at least 20% equity in your home, PMI is no longer necessary.
We work with clients with a wide range of borrowing histories. From shaky credit to perfect credit, we believe that we can find the right loan program for you. Learn more about the ways you can decrease your home loan payment by contacting US Mortgages today.
You have questions, we have answers
Would you like to reduce your home loan terms? Even if US Mortgages wasn't your primary lender for your mortgage, we can help you reduce your ...
Would you like to reduce your home loan terms? Even if US Mortgages wasn't your primary lender for your mortgage, we can help you reduce your mortgage term. Learn more about how we do this and contact us for more information.
How can US Mortgages help you reduce the term of your mortgage?
Thanks to historically low interest rates, there has never been a better time to refinance your loan into a shorter term. For those who can afford a slightly larger monthly payment, reducing your loan term can mean paying less interest over a much shorter length of time, saving you thousands of dollars over the term of the mortgage.
Did you know that if you refinance a 30 Year Term Mortgage Loan into a 15 Year Term Mortgage Loan, the payments won't be twice as expensive? That's because the loans are amortized differently and your payments will be applied to the principal instead of interest. Another little-known fact is that 15 Year Term Mortgage Loans and 20 Year Term Mortgage Loans typically feature a lower interest rate than a 30 Year Term Mortgage Loan.
What else do we recommend to reduce the loan term on your home mortgage?
Another trick to reducing the loan term on your home mortgage is making extra payments. You can always choose to pay more than the required minimum payment, no refinancing necessary! This is an attractive option for those with tenuous finances who still want to pay off their mortgage quicker. You can make larger payments as often as you can afford, while still having the option of making the basic minimum payment when money is tight. When is the strain of doing this worth it? If you're already close to your mortgage term, this might make the most sense if your household can make the sacrifice. Not only will you save in interest in the long term, in the short term you'll reduce the term of your loan. A final option is to do both: if you make extra payments after refinancing into the same style of 30 Year Term Mortgage Loan, the extra payments will get applied to your principal, bringing your payoff date closer.
Contact US Mortgages to learn more about how to reduce mortgage term today!
You have questions, we have answers
Our clients appreciate our fast turn around times—some of the fastest in the industry. For most loans, the entire process-- from application to close, in as little as 2 weeks.
If your credit is less than perfect, newly established, or you're self-employed, talk to
We've made refinancing
The amount you can personally save will vary, since everyone’s mortgage,
A typical refinance transaction can be completed from application to close in less than 21 days and some refinances can even close in as little as 10 days. This depends on your participation and the delivery of the required qualification documents to the lender. It may also depend on the availability and schedule of a licensed real estate appraiser in your area. Sometimes USDA (rural) and VA (Veterans Affairs) loans may take longer for this reason.
A home equity loan may seem like the less expensive alternative at first glance since it doesn’t have closing costs but in the long run, it can cost you much more since the interest rate is uncapped and the rate can rise without notice. Most borrowers tend to use the higher interest HELOC option like a credit card, paying it down and drawing more out for an endless cycle of high-interest monthly repayment costs. A cash-out refinance might be your safest and most predictable course of action, since all closing costs are included in the loan. Additionally, the interest paid on a cash out refinance is tax deductible which may result in additional annual savings.
One of the most popular reasons for refinancing a mortgage is simply to lower your rate. There are several different approaches to lowering your current mortgage payment including but not limited to refinancing to a lower interest rate. However, just having a lower mortgage payment is like treating the symptoms and not the cause. Typically, homeowners have other monthly debt that they service like credit cards, car loans, student loans, and even HELOCs. If you have equity in your home you may consider a cash-out refinance to pay off the other high-interest debt and lower your overall monthly payments.
If you're looking to accelerate the repayment of your mortgage and potentially save thousands of dollars in interest, here are four simple tips to help you can pay your mortgage off faster:
There are two major benefits to a 15-year fixed rate mortgage over a 30-year fixed rate mortgage. A 15-year mortgage typically comes with a lower interest rate, which means that the overall interest you’ll pay on the principal balance of the mortgage is lower. The second benefit is that you’ll pay off your mortgage in half the time of the traditional 30-year option. By paying interest for only half the amount of time, you’ll end up paying significantly less to own your home free and clear.
Paying off your mortgage earlier is a personal decision based on your financial goals. The good news is, most lenders will let you pay off your loan faster without pre-payment penalties. here are just a few reasons you might consider accelerating your repayment:
You can look at prioritizing your debt in two ways. First by looking at which debt actually will cost you the most over time. You may want to pay off debt that has a considerably higher interest rate than your mortgage. You might also look at the debt that's costing you the most every month. If you find your month to month cash flow is tight, you may consider eliminating some of the larger payments like cars, appliances, and even home equity lines of credit.
A cash-out refinance to pay off high-interest credit card debt makes great financial sense, as long as you have the discipline not to run up your credit card balances after they've been paid off. If you can maintain the discipline to never use more than 30% of your available consumer credit at any given time, you'll probably see a significant increase in your FICO scores.
While the interest you pay on consumer debt like credit cards
A cash-out refinance allows you to unlock the equity in your home. The amount of cash you can receive is based on the difference between the current value of your home minus the remaining balance on the loan. You basically refinance the mortgage for more than the current balance and less than the current value. While having the equity in your home may seem appealling, something to consider is that as long as you still owe money on your home, the house and the equity belongs to the bank as collateral against the mortgage.
Most cash-out refinances will normally require a home appraisal. The appraiser will establish the value of your home by inspecting the condition of your property and comparing it to "comps" in your neighborhood. The estimated value of your home minus the amount you still owe on the mortgage determines your equity. Quite often, you may find your home may be actually worth more than you think, so having a home appraisal. If your a previous customer of US Mortgages your appraisal costs will be reimbursed at closing thanks to our Lifetime Origination Guarantee™.
Depending on your loan type, you can take out the difference up to 80% of the home’s current value versus the remaining balance or the entire difference between your home’s current value versus the remaining balance. If you're a veteran you may even be eligible to take out up to 100% of the home’s current value versus the remaining balance. To get a better idea of your available equity, schedule a no cost, no obligation consultation with a Personal Mortgage Advisor.
Absolutely. FHA loans normally will allow you to cash out up to 85% of the property’s current value and require less documentation than a conventional cash-out refinance mortgage. A VA loan process is similar to the FHA in that it is backed by the federal government, however, with a cash-out VA refinance you can cash-out up to 100% of your home’s current value. If you or your spouse is either a veteran, active in the military or a surviving spouse, a VA loan may be a great option.
For a single-unit investment property purchase, a 15% down payment is normally required with an LTV of 85%. 2-4 unit investment property purchases with an LTV of 75% may require a 25% down payment to finance the property.
Required income for financing your investment property varies depending on the estimated amount of the monthly mortgage payment along with other debt considerations. The total debt-to-income ratio (including the mortgage payment) generally should not exceed 45%. For more information, we recommend a no cost, no obligation consultation with one of our Personal Mortgage Advisors.
Usually, you have to wait through a six (6) month seasoning period prior to using a cash-out refinance to take equity out of your investment property. However, there are programs, like as US Mortgages Investors Edge Financing™, that may allow you to cash out immediately after your purchase. Contact one of our Personal Mortgage Advisors to get more information on specific programs and the corresponding guidelines.