Which Refinancing Loan Program is Best for You?
When you are overwhelmed with so many options, it may seem as if there are even more loan programs than borrowers! Contact us at 701.222.0100 and we will help you qualify for the perfect refinance loan for your needs. There are some general questions to ask yourself as you review your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, the best option might be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you are planning to stay in your home for about five more years, a fixed-rate loan may be a particulary good choice for you. However, if you can see yourself moving before too long, an ARM mortgage with a small initial rate could be the best way to reduce your monthly payment.
Are you refinancing mainly to "cash out" some home equity? Your home needs updating; your son has been accepted to college and needs tuition money; or you have a special family vacation planned. So you will want to look for a loan above the balance remaining of your existing mortgage loan.Then you will You'll be looking for a loan for more than the balance remaining on your present mortgage in that case. You may not have an increase in your monthly payemnt, though, if you have had your existing mortgage for a while, and/or your interest rate is high.
Do you have other debt, perhaps with a high interest rate, that you want to consolidate? If you have enough equity, paying toward 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 lot of cash each month.
Building up Equity More Quickly
Do you want to build up equity more quickly, and pay off your mortgage sooner? You should consider refinancing to a short-term loan, such as a 15-year mortgage loan. The payments will probably be higher than they were with your longer term loan, but in exchange, you will pay substantially less interest and will build up equity quicker. But, you might be able to make the change without much increase in your monthly payment if your long term loan was closed a while ago, and the balance remaining is small. 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 can help you reach your goals!
Want to know more about refinancing? Call us: 701.222.0100.