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Interest rates are falling again, and many Albuquerque homeowners are now deciding on what they should do with the equity they’ve gained in their homes. Some homeowners are considering using that equity for home improvement projects, bill consolidation or for a college education. Whatever their needs may be, homeowners are looking to tap into that equity. But, should the homeowners do a full-refinance, take out a second mortgage? Indigo Mortgage can help you with that tough decision!

The answer to this depends on your first mortgage and how much equity you intend to tap into. A full-refinancing could be a lower or higher interest rate. Depending on how much you are borrowing and what the new payment looks like, a full refinance may be worthwhile.

To calculate this, you will need to determine what the payment will be on a full-refinance using today's’ rates including the cost of cashing out and closing costs. From there, look at what the payment would be on a second mortgage while leaving the first mortgage in place. Then, add the second mortgage payment to the current first mortgage payment. Then, compare the second to determine which will fit your budget better. It’s just that easy!

If you choose a second mortgage, there are some things to consider. Clients need to make sure it’s a fixed-rate second mortgage and not a HELOC (Home Equity Line of Credit). HELOCs carry a variable rate.

If you’re shopping for a full-refinance, make sure to use a local Albuquerque Mortgage company, like Indigo Mortgage. Indigo Mortgage will give you an honest evaluation and assist you instead of trying to sell you a loan. Indigo Mortgage will provide you with accurate information and won’t try to sway you one way or the other.

Published in Blog
Tuesday, 16 April 2019 14:58

KKOB -April 2nd, 2019

<>Ben Lucero speaks about the latest on interest rates in the market.
Published in Radio
Friday, 03 August 2018 20:01

Refinancing Home Equity Loans

Home Equity Lines of Credit or HELOC’s, also referred to as a second mortgage, have always been a popular avenue for home owners to tap into their home’s equity at a low interest rate. The problem with HELOCs is that they often carry a variable rate and when interest rates start to rise, so will the payments.

When the fed announces another rate hike in the coming months, HELOC’s will instantly go up by a .25% to .5%. The rule of thumb in today’s financial world is that each quarter the rate will increase by a .25% to .5% so this time next year, those HELOC rates will be a full 1% to 2% higher than they are today.

We have already seen two rate hikes in the last six months and people with HELOCc are feeling the effects. Many home owners with HELOCs might have been lulled into making the low interest only payments over the last few years and neglected to pay down the principle, creating a ripple effect because the principal is not being reduced, at the same time the interest rate is increasing. If home owners do not take some kind of action to get these HELOCs paid off or paid down, they can realistically see their payments double, triple, or quadruple over the next few years.

With mortgage interest rates still at reasonable levels, now would be an opportune time to look into refinancing both the first mortgage and HELOC into a low fixed rate mortgage, if the home owner has enough equity to accommodate both mortgages.

If the borrower is a military veteran, there’s more good news-- they can refinance up to 100% of the value of the home to accommodate this. FHA will allow up to 97% loan to value. We encourage borrowers with HELOC’s to call Indigo Mortgage and see if a refinance will improve their loan payoffs and perhaps save some money each month.

Published in Blog
Tuesday, 08 November 2016 19:44

KKOB on November 8

It's important to shop around and know your options when you're looking to refinance or obtain a loan. Often, you can get lower rates than you expect, especially now that rates are at historic lows. If one lender turns you down, don't give up! Ben Lucero discusses the many options that working with a broker like Indigo Mortgage affords homebuyers and those looking to refinance.
Published in Radio
Tuesday, 04 October 2016 22:07

Better Loans for Veterans

If you’re a veteran, be wary of refinancing offers from national or out-of-state lenders. We’ve seen cases where they may actually hurt you rather than help.

For example, we had a disabled veteran come in and ask us to compare offers he got from a national lender. This lender was giving him a 4.25% interest rate, and $7,000 in lender fees. The lender claimed to be the largest lender in the U.S. and continually called this man to persuade him to do the loan through them. When he consulted us, we were appalled! We were able to get him a rate in the mid 3% range with zero lender fees!

Another disabled veteran who had received a loan offer from a lender in Denver recently came back to us for help. This lender had him convinced that they had the best interest rate and lower fees than anyone else out there. He decided to go through with the loan. But four months later, they still had not closed his loan, and they never gave him a firm estimate on the interest rate and fees on his loan. Eventually, he decided to work with us because of our transparency. His interest rate turned out to be in the low 3% range.

Here at Indigo Mortgage, we want to advise veterans to shop loan options, because education is the key to ensuring you get an honest offer. Be careful when engaging an out-of-state lender. Our staff at Indigo Mortgage is happy to help veterans compare loan offers, and often, we help them obtain lower interest rate loans with no lender fees.

Published in Blog

From The Blog

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    Preapproval is necessary for the home-buying process. In fact, it’s so necessary that realtors in Albuquerque are hesitant to show Read More
  • Full-Refinance or Taking Out a Second Mortgage Equity Loan? +

    Interest rates are falling again, and many Albuquerque homeowners are now deciding on what they should do with the equity Read More
  • New Mortgage Rate Updates +

    Homeowners in Albuquerque who are looking to refinance have some good news as interest rates over the last few weeks Read More
  • First Time Home Buyer Loans +

    Many mortgage lenders make offers for first-time home owner loan programs or first responder programs. However, they embellish what those Read More
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