A Colorado refinance of your mortgage could have a lot of advantages.

Posted by maryparker on August 10th, 2013

Refinancing is the process of contracting a new loan with the purpose of repaying the existing loan. Refinancing a loan requires a full repayment of a loan whose purpose is to comply with the credits referred to, based on current laws. The criteria and procedures for granting are similar to those of a newly contracted credit, depending on the chosen credit institution and product. A Colorado refinance is a good idea if you can obtain it, because you can enjoy its advantages.

Refinancing brings a lot of advantages. One of them is the lower interest rate. Most people believe that this is the main advantage of a Colorado refinance. In order for this to be truly a benefit, we recommend that you should analyze the refinancing offer and pay attention to the real interest of the new loan. In addition, do not forget that refinancing involves some fixed costs too, such as those related to repayment of the initial loan, to granting of the new credit, which adds to the cost of the new loan; so the decision to refinance a loan should be carefully analyzed.

Another advantage, which in our opinion could be crucial, is the possibility of obtaining an additional amount of money. Contracting a new loan on more favorable conditions means a reduction in household indebtedness (a better reliability) and, automatically, access to additional funds. Another condition that comes to help the supplement of the new loan amount is the possibility to extend its term until the maximum period of credit granted by the institution. Thus, a longer period leads to a higher loan amount and / or lower monthly installments.

Many people wonder whether a loan got through a broker is more expensive than one obtained directly from the bank. The answer is negative. A credit obtained by a loan broker has exactly the same cost as one that was granted by the bank. The reason is that the broker does not take any commission from the clients, the beneficiaries of loans, but from the bank. Why? Because the broker brings the bank new customers that otherwise it would not have had. Moreover, the broker brings better customers than the ones the bank attracts, meaning cheaper.

The bank gets new customers very easily this way, clients for whom the bank did not have to spend money on opening branches where the customer could come, on hiring banking advisors to discuss with the client and advise him. For this reason, banks pay the broker a fee for the new customers. Moreover, the bank wins by the fact that it receives credit files with a high degree of approval, as they have already passed through the filter of the broker.

So everyone is happy when they turn to a loan broker: the client saves time and can choose the best offer and can receive expert advice; the bank saves money and gets many cheap customers; the company of brokerage has nice gains from this activity.

beaconfinancialinc.com is an example of such a broker agency which advises customers on their Colorado refinance, for example.