Selecting a Refinancing Loan
Even though it may seem like it at times, there are not as many refinance loan choices as there are applicants! Contact us at 701.222.0100 and we can match you with the refinance program that is ideal for you. What are your reasons for refinancing? Considering in mind the following will help you narrow your choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? If so, the best choice may be a low fixed-rate loan. Maybe you are now in a mortgage with a high, fixed interest rate, or a mortgage loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low rate for the term of your mortgage. A fixed-rate mortgage can be particularly a wise option if you aren't expecting a move within the next 5 years or so. On the other hand, if you can see yourself moving before too long, an ARM mortgage with a small initial rate could be the best way to lower your monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your equity with your refinance? Maybe you're going on a much needed vacation; you need to pay college tuition for your child; or you are planning some home improvements. In this case, you will want to get a loan above the remaining balance of your present mortgage.With this goal, you will need You might not increase your monthly payemnt, however, if you've had your current loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Perhaps you hope to pull out a portion of the equity (cash out) to put toward other debt. If you hold any higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have enough home equity.
Paying it off Sooner
Are you dreaming of paying off your loan sooner, while building up your equity faster? If this is your hope, your refinance loan can move you to a loan program with a shorter term, for example: a 15 year loan. Even though your mortgage payments will probably be increased, you will be paying less interest; so your home equity will build up faster. But, you could be able to switch without a higher monthly payment if your longer term mortgage was closed a while ago, and the balance remaining is low enough. You could even pay less! To help you figure out your options and the many benefits of refinancing, please contact us at 701.222.0100. We are here for you.
Want to know more about refinancing? Call us: 701.222.0100.