Which Refinancing Option is Best for You?
When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than applicants! Call us at 701.222.0100 and we will match you with the refinance loan program that is best for your needs. There are several questions to ask yourself while you review the options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Maybe you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you set that low interest rate for the life of your mortgage. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can especially be a wise choice. However, an ARM with a initial low payment could be a better way to reduce your payments if you expect to move within the near future.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? It could be you're going on a much needed vacation; you have to pay college tuition for your child; or you are planning some home improvements. So you will need to get a loan above the remaining balance on your present mortgage.Then you You will want to apply for a loan for more than the balance remaining on your current mortgage in this case. You might not increase your mortgage payemnt, though, if you have had your current loan for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Do you hold other debt, maybe with high interest, that you need to consolidate? If you have a fair amount of home equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) might help save you a lot of cash each month.
Paying it off Sooner
Do you plan to build up equity more quickly, and have your mortgage paid off faster? Consider refinancing with a short-term loan, like a 15-year mortgage loan. Although your mortgage payments will probably be increased, you will be paying less interest; so your equity amount will rise up faster. But, you might be able to make the change without a higher monthly payment if your longer term mortgage was closed a while ago, and the remaining balance is low enough. You could even make it lower! To help you figure out your options and the multiple benefits in refinancing, please call us at 701.222.0100. We can help you reach your goals!
Curious about refinancing your home? Give us a call: 701.222.0100.