Refinancing: Which Option is for You?
Although it may seem like it at times, there are not as many refinance options as there are applicants! Call us at 701.222.0100 and we'll work with you to qualify you for the best refinance program for your situation. There are several things to bear in mind as you consider the choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal loan program for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. This can be particularly a good option if you don't think you'll be moving within the next 5 years or so. However, an ARM with a low intitial payment could be a smarter way to lower your monthly payments if you plan on moving within the near future.
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? Maybe you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you need to find a loan higher than the balance remaining of your existing mortgage.So you want However, if your loan interest rate is high now and you've held it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you want to cash out some equity to consolidate additional debt? Yes you can! If you own some higher interest debts (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the home equity built up to make it work.
Switching to a Shorter Term Loan
Are you hoping to fatten your equity faster, and pay off your mortgage more quickly? Consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Your monthly payments will likely be more than they were with the long-term loan, but in exchange, that you will pay considerably less interest and can build up equity quicker. But, you might be able to switch without a higher monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low enough. You may even make it lower! To help you figure out your options and the multiple benefits of refinancing, please contact us at 701.222.0100. We are here to help you reach your goals!
Want to know more about refinancing? Call us: 701.222.0100.