Refinancing: Which Option is for You?
There are an enormous number of refinancing programs available to borrowers. We can guide you to locate the refinance program that can fit your situation the best. Call us at 952 417 8481 to get started. In order to review your options, you should determine what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then your best option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your loan, even when interest rates rise. If you are expecting to live in your home for about five more years, a fixed rate mortgage may be an especially good option for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Your house needs renovating; your daughter has gone to University and needs tuition money; or you are planning a special vacation. With this in mind, you need to find a loan for more than the balance remaining on your present mortgage loan.So you want You may not have an increase in your monthly payemnt, though, if you've had your current loan for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you hold other debt, maybe with high interest, that you need to consolidate? If you have some higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have enough home equity.
Building up Equity Faster
Do you hope to build up equity more quickly, and have your mortgage paid off more quickly? If this is your hope, your refinance can change you to a mortgage program with a short, for example: a 15 year loan. Even though your mortgage payment amount will usually be increased, you will save on interest; so your home equity will rise up faster. But, you may be able to make the change without much increase in your monthly payment if your long term mortgage loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you determine your options and the multiple benefits of refinancing, please call us at 952 417 8481. We are here for you.
Want to know more about refinancing? Call us: 952 417 8481.