If you're looking to lower your monthly payments, or even just to have some extra cash on hand, it might be time to refinance your mortgage with Colorado State Bank and Trust.
Make the Most Out of Your Home InvestmentSince your home is probably the largest investment you've made, you want to make the most out of it. Refinancing your mortgage could be just the thing to help. Refinancing may help you consolidate debt, lower your monthly payments, or even shorten your term.
Lower Your Payments
Refinancing your mortgage can save you thousands of dollars by lowering your interest rates and your monthly payments. You may also be able to shorten your term, to help you pay off the mortgage faster than you originally expected.
Take Out Money for Anything You Need
Maybe you want to do some home renovations. Or perhaps you want to pay for a child's education, consolidate your higher interest debt, or even take a dream vacation. With a mortgage refinance from Colorado State Bank and Trust, you can use those extra funds for whatever you need and save money at the same time.
Refinancing SolutionsWe offer two options to refinance your mortgage — find your right fit below:
||Option 1 (via Relationship Banker)||Option 2 ( via Mortgage Banker)|
|Up to 15 Years||Up to 30 Years|
|Up to $150,000||Up to $3,000,000|
Taxes and Insurance Method of Payment
|Paid by Client||Escrow Available|
Max Loan to Value (LTV)
|Up to 85%||Up to 100% *|
Private Mortgage Insurance (PMI)
|No PMI||Yes, if greater than 80% LTV|
Second Homes and Investment Properties
|No Appraisal Fee||Yes|
|No Closing Costs||Yes|
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Mortgage Refinancing Q & A
A drop in interest rates can mean lower monthly payments. When you refinance, you may be able to:
Eliminate private mortgage insurance (PMI)
- If your original down payment was below 20%, you’re probably paying PMI.
- If you have made timely payments for a period of time, you may have established enough equity to eliminate PMI which could lower your monthly mortgage payments, without having to refinance.
Refinance to a longer-term loan
- A longer-term loan can lower your monthly payments, but increases the total interest you’ll pay over the life of the loan.
- You may have additional costs from the closing transaction.
Refinancing may allow you to replace your current loan with a new mortgage that has better terms. Here are some of the potential benefits of a refinance.
Increased cash flow
- Your loan’s monthly payment typically decreases with a lower mortgage interest rate.
- With a lower payment, you can use the extra funds for retirement savings, paying other debts, saving money for college, or other purposes.
Potential to switch to a different loan type
- If you have an adjustable-rate (ARM) or a balloon mortgage, reduced interest rates may make a fixed-rate mortgage more desirable, especially if you want the stability of an interest rate that does not change over time.
- If you have a long time left on your mortgage, lower interest rates may make it possible to switch to a shorter-term mortgage.
- You can pay the principal balance down and build equity faster.
- You may pay less interest over the life of the loan with a shorter term loan.
Determine your estimated costs
When you refinance, you may pay:
- An origination cost that may include fees such as application, processing and underwriting.
- Other settlement charges such as appraisal, credit report, title search.
Assess how much longer you’ll stay in the home
If you plan on owning the home for an extended period of time, and the interest rates are 1/2% to 5/8% lower than your current rate, refinancing may be the right choice for you.
Keep in mind that you are starting over. Refinancing replaces your existing loan with a new one. If you refinance back to the same loan term on the new mortgage, you may pay more additional interest than you would save by lowering your monthly payment.