If you would like to learn more about refinancing, contact us…Ken Benjamin, your New Mexico Mortgage Man at Falcon Ridge Financial and a refinance expert will contact you.

Please click on any of the following links to
 obtain helpful information in making your decision.

Many people have used an adjustable-rate mortgage (ARM) to get lower monthly mortgage payments.

However, interest rates have been rising. If your ARM is reaching the end of its fixed period your mortgage payment could increase significantly.

Don't miss an opportunity to lock into a low fixed-rate and payment today

They give two main reasons why they are making the change:

First, some refinance after deciding to keep a home longer than they had intended.  Most ARM’s are for a three or five year period at a low rate and some homeowners had originally planned to re-sell their home during that period.

Second, some refinance because it’s easier to make firm plans for the future if their mortgage rates can’t fluctuate.  Depending on what type of ARM you may have, monthly payment adjustments can be very upsetting and upsetting to your budget.  Fixed monthly payments may help you plan for the future.

2. The number of amazing deals you
     can get on interest rates today.

However, it is not written in stone that these rates will stay the same for very long.  Experts say rates will rise.  The Mortgage Bankers Association's forecast calls for mortgage rates to rise about three-quarters of a percentage point the rest of the year. The first half of 2007 in New Mexico has seen a slow but steady rise in interest rates.  So, it is a good idea to look into this now before it’s too late and you find the interest rates are rising once again back into the 8 and 9 % range.

4.  Continue on with your plans.

Refinancing your mortgage can give you the cash you are looking for and leave your mind at peace to continue with your plans.  Maybe you are planning that vacation of a lifetime and you can get the trip on sale. You will need to come up with quick cash and this is one way to do it. Maybe you have had your eye on a certain piece of property that you want to buy to start a business, but you’re afraid it will be too late by the time you round up enough cash to do this.  Maybe there are some long term health care issues for family members to be resolved.  Refinancing can give you the cash to make your dreams come true.

5. You can change the term of your mortgage.  

For instance, if you have a 15-year mortgage, you can lengthen the term to 30 years. Since the balance of your mortgage is spread out over a longer period of time, your payment is lower. However, if you have a 30 or 40 year mortgage and one of your financial goals is long-term savings, you may want to consider shortening your term to 20 or even 15 years. Your payment will be higher, but you will pay much less in interest over the life of the loan, saving you thousands of dollars in the long run.

6.  Getting your cash out

This is usually done when you want to finance an important home improvement, pay for college or pay off high-interest credit card debt. Whatever your reason, this may be the right option for you.

 7. Consolidating High-Interest
     Credit Card Debt with a Home Equity Loan

The difference between credit card debt and a mortgage can, financially speaking, mean thousands of dollars. Why? Because unlike your mortgage, the interest you pay on a credit card is not tax-deductible and you pay a higher rate than you would on your mortgage. Because of this, credit card debt is often referred to as “bad debt” whereas your mortgage is considered “good debt.” Using your home equity to pay off your high-interest credit card debt can save you money in the long run. Using your home equity, rather than your credit cards, to finance expensive purchases can also be a smart move. Be sure to consult your tax advisor.

8.  Interest-Only Loans   

Another way  to lower your payment is to refinance to an interest-only loan. Basically, with an interest-only loan, the minimum amount you are required to pay is the amount of interest for a certain period of time, although you can pay as much principal as you like. But you get the flexibility to pay less if you need or want to divert your money elsewhere, such as contributing to your 401k or saving for your child’s college tuition.

The interest-only option is available in the initial years of the loan for a fixed number of years. After the interest-only period, all payments will then include principal and interest. Interest-only loans can be either traditional fixed-rate or adjustable-rate mortgages. Falcon RidgeFinancial, LLC offers interest-only refinance options that are interest-only for the first 10 years.

Who Is an Interest-Only Refinance For?

Refinancing to an interest-only loan is a good choice for anyone looking to make their money work harder for them. For instance, making interest-only payments and putting the difference into an investment which brings a higher rate of return. Traditional mortgages offer no such option. That's something to think about if you're not maximizing your yearly 401(k) and IRA contributions.

But there are other things you can do with the extra cash you can have every month:

• You could pay down high-interest credit card debt.
• Save for your children's college tuition.
• Buy or lease a second family vehicle.
• Increase your home's value by making home improvements.
• Set aside money for a rainy day.

Depending on your existing loan balance, refinancing to an interest-only loan could get you access to thousands of dollars over the course of several years to put to use as you think best.

Interest-only refinancing may also be a good option for people who expect to move again before the end of the interest-only period of their home loan.

The Truth About Interest-Only Refinancing

A big misconception about interest-only mortgage refinancing is that if you're not paying down your loan's principal every month, you're not building home equity. That's not necessarily true. According to CNN MONEY in the first quarter of last year,  homes in Albuquerque have been appreciating at 14.8%. Chances are that even if you're not paying down principal, appreciation is building equity in your home for you.

 

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