Selecting a Refinancing Loan
There aren't as many loan programs as there are borrowers, but sometimes it feels like it! Contact us at 952 417 8481 and we can match you with the refinance program that best fits you. In order to review your options, you should determine what you want to achieve with the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the ideal loan program for you. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you set that low interest rate for the term of your loan. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a wise choice. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.
Getting Out some Cash
Are you hoping to cash out some of your home equity in your refinance? Your home needs new carpet; your daughter has been accepted to University and needs tuition; or you are planning a special vacation. Then you will need to get a loan higher than the remaining balance on your present mortgage loan.In that case, you'll need However, if your loan interest rate is high now and you've held it for a long time, you may be able to reach your goals without making your monthly payments rise.
Do you want to cash out a portion of your equity to consolidate other debt? Excellent idea! If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Getting a Shorter Term Loan
Are you planning to fatten your equity faster, and get your mortgage paid off more quickly? If this is your goal, your refinance mortgage can switch you to a loan program with a shorter term, for example: a 15 year loan. The mortgage payments will probably be higher than they were with the longer term loan, but in exchange, you will pay quite a bit less interest and can build up equity more quickly. But, you may be able to switch without a bigger monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the numerous benefits of refinancing, please contact us at 952 417 8481. We will help you reach your goals!
Want to know more about refinancing? Give us a call: 952 417 8481.