Selecting a Refinancing Option
There are an enormous number of refinancing programs available to borrowers. We can help you choose the refinance loan program that will fit your financial situation the best. Call us at 701.222.0100 to get things started. In the interest of looking at your options, you will need to consider your goals for your refinance.
Reducing Your Monthly 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 currently hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate varies. Even if interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. This is particularly a wise choice if you don't think you will move within the next five years or so. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced payments.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Maybe you need to pay for home improvements, take care of your college kid's tuition, or go on a an Alaskan cruise. With this in mind, you'll want to find a loan for more than the remaining balance on your current mortgage.In that case, you You will be looking for a loan for more than the remaining balance on your current mortgage in that case. However, if your loan interest rate is currently high and you've held it for quite a few years, you may be able to achieve your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you want to cash out some of your equity to consolidate other debt? Excellent idea! If you have the home equity to make it work, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars monthly.
Building up Equity More Quickly
Do you want to build up equity more quickly, and have your mortgage paid off sooner? If this is your hope, the refinance mortgage can move you to a loan program with a short, such as a 15 year loan. Your payments will probably be higher than they were with the long-term loan, but in exchange, you will pay considerably less interest and can build up equity quicker. Conversely, if your existing long-term mortgage loan has a small remaining balance, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at 701.222.0100. We will help you reach your goals!
Curious about refinancing your home? Call us: 701.222.0100.