Selecting a Refinancing Option
There are a huge number of refinancing programs available to borrowers. Call us at (612) 240-9922 and we'll help you qualify for the best refinance program to fit your needs. There are several questions to ask yourself as you review your choices.
Lowering Your Payments
Are achieving reduced monthly payments and an improved rate your main refinance goals? If so, your best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in the low interest rate for the life of your mortgage. If you aren't planning a move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good loan option. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Getting Out some Cash
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? Maybe you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you plan to renovate your home. In this case, you want to qualify for a loan above the remaining balance of your present mortgage.Then you will want to need to find a loan program for a bigger amount than the remaining balance on your existing mortgage loan. If you've had your existing mortgage for quite a while and/or have a mortgage with high interest, you may be able to do this without increasing your monthly payment.
Do you hold other debt, maybe with a high interest rate, that you need to consolidate? If you have enough equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a lot of money each month.
Paying it off Faster
Do you plan to build up equity more quickly, and have your mortgage paid off sooner? In that case, you'll want to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. Your monthly payments will probably be higher than they were with your long-term loan, but the pay-off is: that you will pay considerably less interest and can build up equity quicker. Conversely, if your current longer term loan has a small remaining balance, and was closed a while ago, you may be able to make the switch without paying more each month. To help you determine your options and the multiple benefits of refinancing, please contact us at (612) 240-9922. We are here for you.
Curious about refinancing? Give us a call at (612) 240-9922.