Refinancing: Which Loan Program is for You?
There are an enormous number of refinancing options available to borrowers. Call us at 701.222.0100 and we can work with you to qualify you for the right refinance loan to fit your needs. What do you hope to achieve with refinancing? Considering in mind the information below will help you begin your decision process.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best choice could be a low fixed-rate loan. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you close a fixed rate mortgage, you set the low rate for the life of your mortgage. A fixed-rate mortgage can be particularly a wise idea if you don't plan to move within the next 5 years or so. However, if you can see yourself moving before too long, an adjustable rate mortgage with a low initial rate might be the ideal way to reduce your monthly payments.
Getting Out some Cash
Is "cashing out" your primary reason for refinancing? Maybe you want to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you will need to find a loan above the remaining balance on your present mortgage.So you You will be looking for a loan for more than the remaining balance of your existing mortgage in that case. If you've had your current mortgage for quite a while and/or have a loan with high interest, you might\could be able to do this without making your monthly payment bigger.
Do you hold other debt, maybe with high interest, that you want to consolidate? If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (for example: car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars monthly.
Paying it off Faster
Are you dreaming of paying off your loan sooner, while building up your equity faster? You should consider refinancing to a short-term loan, like a 15-year mortgage loan. Your mortgage payments will probably be higher than with your long-term loan, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. But, you might be able to make the change without a higher monthly mortgage payment if your long term mortgage loan was closed a while back, and the balance remaining is low. You may even make it lower! To help you figure out your options and the many benefits in refinancing, please contact us at 701.222.0100. We are here for you.
Curious about refinancing your home? Give us a call at 701.222.0100.