Choosing a Refinancing Program
When you are overwhelmed with so many choices, it may seem like there are even more refinance programs than borrowers! Call us at 952 417 8481 and we can match you with the refinance program that is ideal for your needs. What are your goals for refinancing? Considering in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, applying for a low, fixed-rate loan might be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even as interest rates rise. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a great loan option. On the other hand, if you do see yourself selling your home within the next few years, an adjustable rate mortgage with a small initial rate might be the ideal way to lower your monthly payments.
Is "cashing out" your main purpose for refinancing? Your house needs improvements; your daughter has gone to University and needs tuition; or you are taking your family on a cruise. In this case, you want to find a loan above the remaining balance on your existing mortgage loan.So you'll want You may not increase your monthly payemnt, though, if you've had your current mortgage for a while, and/or your loan interest rate is high.
Do you want to cash out some home equity to consolidate additional debt? Yes you can! If you have enough equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of money every month.
Switching to a Shorter Term Loan
Do you hope to build up home equity quicker, and have your mortgage paid off faster? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage. Even though your mortgage payment amount will likely be more, you will be paying less interest; so your equity will rise up faster. But, you might be able to switch without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you figure out your options and the multiple benefits in refinancing, please contact us at 952 417 8481. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call: 952 417 8481.