Which Refinancing Loan Program is Best for You?
There are an enormous number of refinancing programs available to borrowers. Contact us at 701.222.0100 and we can match you with the refinance loan program that fits you best. surveying your choices, you can list your goals for the refinance.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? If so, your best option might be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan in which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. This can be particularly a good idea if you don't think you'll be moving within the next 5 years or so. However, an ARM with a initial low payment could be a better way to lower your mortgage payments if you expect to move in the next few years.
Is "cashing out" your main reason for your refinance? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. So you'll want to apply for a loan for more than the balance remaining of your existing mortgage loan.In that case, you want to find a loan program for a bigger amount than the balance remaining on your present mortgage loan. If you've had your current mortgage for a number of years and/or have a high interest mortgage, you may be able to do this without making your monthly payment higher.
Do you want to pull out some equity to consolidate other debt? Yes you can! If you own any debt with higher interest (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough home equity.
Building up Equity More Quickly
Do you hope to build up home equity quicker, and have your mortgage paid off more quickly? If this is your goal, your refinance can move you to a mortgage loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and growing your equity faster, even though your mortgage payments will usually be higher than they were. However, if you've held your existing thirty year mortgage for a number of years and the loan balance is relatively low, you might be do this without increasing your mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing, please call us at 701.222.0100. We are here to help you reach your goals!
Want to know more about refinancing your home? Give us a call at 701.222.0100.