Which Refinancing Option is Right for You?
There are an enormous number of refinancing options available to borrowers. Call us at 701.222.0100 and we will match you with the refinance program that best fits you. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you narrow your choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? Then the best choice could be a low fixed-rate loan. Perhaps you are now in a mortgage with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your mortgage loan, even as interest rates rise. If you plan to stay in your home for at least five more years, a fixed-rate loan may be a particulary good choice for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? Your home needs renovating; your daughter has gone to college and needs tuition money; or you are taking your family on a cruise. In this case, you will need to find a loan for more than the remaining balance on your present mortgage.So you will You'll need to qualify for a loan for more than the current balance with your existing mortgage in that case. However, if your loan interest rate is currently high and you've held it for a long time, you may be able to reach your goals without an increase in your mortgage payment.
Do you hold other debt, maybe with a higher interest rate, that you need to consolidate? If you have enough home equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a chunk of money every month.
Switching to a Shorter Term Loan
Are you hoping to fatten up your home equity faster, and pay off your mortgage sooner? Then, you'll want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. Even though your mortgage payments will likely be increased, you can be paying less interest; so your home equity will rise up faster. But, you may be able to make the change without a bigger monthly mortgage payment if your longer term loan was closed a while back, and the balance remaining is somewhat low. You could even make it lower! To help you determine your options and the many benefits of refinancing, please call us at 701.222.0100. We are here for you.
Want to know more about refinancing your home? Give us a call at 701.222.0100.