Which Refinancing Loan Program is Right for You?
There are a huge number of refinancing programs available to borrowers. Call us at 952 417 8481 and we can match you with the loan program that fits you best. What are your reasons for your refinance loan? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are achieving better payments and an improved rate your main reasons for refinancing? In that case, applying for a low, fixed-rate loan might be a good option for you. Perhaps you are presently in a mortgage with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low interest rate for the term of your mortgage. This is particularly a good option if you don't think you will sell your home within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to lower your monthly payments if you expect to move in the next few years.
Is "cashing out" your primary reason for refinancing? Perhaps you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. Then you'll need to find a loan higher than the balance remaining on your current mortgage loan.So you will You'll be looking for a loan for more than the balance remaining on your present mortgage in this case. If you've had your current mortgage for quite a while and/or have a loan with a high interest rate, you might\could be able to do this without making your monthly payment higher.
Perhaps you hope to pull out some home equity (cash out) to put toward other debt. If you have the home equity for it, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you can possible save several hundred dollars in your monthly budget.
Switching to a Shorter Term Loan
Are you wanting to fatten up your home equity faster, and pay your mortgage loan off sooner? Consider refinancing with a shorterterm loan, often a 15-year mortgage loan. The payments will likely be more than they were with the longer term loan, but in exchange, you will pay considerably less interest and can build up equity quicker. However, if you have had your current thirty-year loan for a number of years and the remaining balance is rather low, you could be do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing, please contact us at 952 417 8481. We are here for you.
Want to know more about refinancing your home? Call us at 952 417 8481.