Which Refinancing Option is Right for You?
The number of refinance options available can be overwhelming. We can help you find the loan program that will fit your needs the best. Call us at 701.222.0100 to get started. surveying your options, you can list your goals for the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage, even when interest rates rise. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a good option. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate to get lower monthly payments.
Is "cashing out" your main purpose for your refinance? Your home needs updating; your son has gone to college and needs tuition money; or you have a special family vacation planned. Then you want to get a loan higher than the remaining balance of your existing mortgage.In this case, you'll want to qualify for a loan program for a bigger amount than the remaining balance on your existing mortgage. You might not increase your monthly payemnt, however, if you have had your current loan for a long time, and/or your interest rate is high.
Do you hold other debt, maybe with a higher interest rate, that you want to consolidate? If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (like credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars monthly.
Switching to a Shorter Term Loan
Are you wanting to fatten up your equity faster, and pay your mortgage off sooner? Then, you'll want to look into refinancing to a short term mortgage loan - like a fifteen-year loan. Your payments will probably be more than they were with your long-term loan, but in exchange, that you will pay quite a bit less interest and will build up equity quicker. However, if you have held your existing thirty year mortgage for a number of years and the remaining balance is relatively low, you might be do this without raising your monthly mortgage payment — you could even be able to save! To help you figure out your options and the numerous benefits in refinancing, please call us at 701.222.0100. We will help you reach your goals!
Want to know more about refinancing? Give us a call at 701.222.0100.