Which Refinancing Option is Best for You?
When you are overwhelmed with all the choices, it may seem like there are even more loan programs than applicants! Call us at 701.222.0100 and we will help you qualify for the best refinance loan for your needs. In order to review your options, you need to think about your goals for your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a good choice. But if you do plan to move more quickly, you will want to consider an ARM with a low initial rate to get reduced payments.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Perhaps you need to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you will want to get a loan above the remaining balance of your existing mortgage loan.So you need You may not have an increase in your mortgage payemnt, however, if you've had your current mortgage for a number of years, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with a higher interest rate, that you need to consolidate? If you have a fair amount of equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of money every month.
Paying it off Sooner
Are you dreaming of paying off your loan more quickly, while building up your equity more quickly? If this is your goal, the refinance mortgage can move you to a mortgage loan program with a shorter term, for example: a 15 year loan. Even though your mortgage payment amount will likely be more, you will save on interest; so your equity amount will rise up faster. However, if you've had your current thirty year mortgage loan for a number of years and the loan balance is relatively low, you may be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please contact us at 701.222.0100. We would love to help you reach your goals!
Curious about refinancing? Give us a call at 701.222.0100.