Which Refinancing Option is Right for You?
There are an enormous number of refinancing programs available to borrowers. Call us at 952 417 8481 and we will match you with the refinance loan program that fits you best. There are some general things to bear in mind as you review the choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan might be a good option for you. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even as interest rates rise. This kind of loan is particularly a good option if you don't think you'll be moving within the next 5 years or so. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.
Are you refinancing mainly to pull out some of your equity for an infusion of cash? It could be you want to make home improvements, pay your child's college tuition bill, or take your dream vacation. So you will want to get a loan above the remaining balance on your present mortgage loan.With this goal, you want You might not increase your mortgage payemnt, however, if you have had your existing mortgage loan for a while, and/or your loan interest rate is high.
Do you hold other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you have the home equity to make it work, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars monthly.
Getting a Shorter Term Loan
Do you need to build up home equity more quickly, and pay off your mortgage sooner? If this is your goal, the refinance loan can switch you to a mortgage loan program with a shorter term, for example: a 15 year loan. Even though your mortgage payments will likely be more, you can save on interest; so your home equity will rise up faster. But, you may be able to make the change without a bigger monthly payment if your longer term loan was closed a while ago, and the balance remaining is somewhat low. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please call us at 952 417 8481. We are here for you.
Curious about refinancing? Call us at 952 417 8481.