Which Refinancing Option is Best for You?
There are a huge number of refinancing programs available to borrowers. Contact us at 952 417 8481 and we will match you with the refinance program that best fits you. surveying your choices, you can determine your goals for the refinance.
Making Your Payments Lower
Are achieving better payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are planning to live in your home for about five more years, a fixed rate mortgage may be a particulary good choice for you. However, an ARM with a initial low payment could be a better way to reduce your monthly payments if you expect to move within the near future.
Is "cashing out" your primary purpose for your refinance? Your house needs improvements; your son has gone to college and needs tuition; or you are planning a special vacation. Then you will want to get a loan higher than the balance remaining on your current mortgage.So you want to qualify for a loan for a higher number than the balance remaining on your current mortgage loan. If you've had your current mortgage for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Maybe you want to cash out some of the equity in your home (cash out) to use toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can save possibly several hundred dollars in your budget each month.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off more quickly, while building up your home equity quicker? If this is your wish, the refinance can change you to a mortgage loan program with a shorter term, such as a 15 year loan. Although your monthly payment amount will likely be increased, you can be paying less interest; so your home equity will rise up faster. However, if you've had your existing thirty-year loan for a number of years and the remaining balance is rather low, you may be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the many benefits of refinancing, please contact us at 952 417 8481. We would love to help you reach your goals!
Curious about refinancing? Give us a call at 952 417 8481.