Choosing a Refinancing Option
When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than borrowers! We can help you select the refinance loan program that can fit your needs the best. Call us at 701.222.0100 to get started. What are your goals for refinancing? Considering in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you get a fixed rate mortgage, you lock in that low rate for the term of your mortgage. A fixed-rate mortgage is especially a good choice if you aren't planning a move within the next 5 years or so. However, if you can see yourself moving in the near future, an adjustable rate mortgage with a small initial rate could be the best way to reduce your monthly payments.
Refinancing to Cash Out
Is "cashing out" your main reason for your refinance? Maybe you need to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. With this in mind, you'll need to look for a loan above the remaining balance on your current mortgage loan.In that case, you'll want However, if your loan interest rate is high now and you've had it for quite a few years, you could be able to reach your goals without making your monthly payments increase.
Do you want to cash out a portion of your home equity to consolidate other debt? Good plan! If you have built up some home 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 chunk of money each month.
Paying it off Faster
Are you wanting to fatten up your home equity faster, and pay your mortgage loan off sooner? In that case, you'll want to find out about refinancing to a short term mortgage - like a fifteen-year mortgage program. Your mortgage payments will likely be more than they were with a longer term mortgage, but in exchange, that you will pay considerably less interest and can build up equity more quickly. But, you may be able to make the change without much increase in your monthly payment if your long term mortgage loan was closed a while ago, and the balance remaining is low. You may even pay less! To help you figure out your options and the numerous benefits of refinancing, please call us at 701.222.0100. We are here to help you reach your goals!
Want to know more about refinancing? Give us a call: 701.222.0100.