Selecting a Refinancing Program
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There aren't as many loan program choices as there are borrowers, but at times it seems like it! Call us at (612) 386-5901 and we can match you with the refinance loan program that is best for your needs. surveying your options, you'll need to think about what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are achieving better payments and a lower rate your main reasons for refinancing? In that case, your best choice could be a low fixed-rate loan. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates rise later, unlike with your ARM, when you get a fixed rate mortgage, you set the low rate for the term of your mortgage. If you are expecting to live in your home for at least five more years, a fixed rate loan may be an especially good fit for you. However, if you do see yourself moving within several years, an adjustable rate mortgage with a low initial rate could be the ideal way to bring down your monthly payments.
Getting Out some Cash
Are you wanting to cash out some of your home equity with your refinance? Maybe you need to make home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. Then you'll need to get a loan above the balance remaining of your existing mortgage.So you want You may not increase your monthly payment, however, if you have had your existing mortgage loan for a long time, and/or your loan interest rate is high.
Maybe you hope to cash out some of the home equity (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars each month.
Switching to a Shorter Term Loan
Are you wanting to fatten your home equity faster, and pay your mortgage loan off sooner? Consider refinancing with a short-term loan, such as a 15-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, although your monthly payments will likely be bigger than you were paying. Conversely, if your existing longer term mortgage loan has a small balance remaining, and was closed a number of years ago, you may be able to make the move without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at (612) 386-5901. We are here for you.
Curious about refinancing? Give us a call at (612) 386-5901.