Refinancing: Which Option is for You?
Although it may seem like it at times, there are not as many refinance choices as there are borrowers! Call us at 218-237-5128 and we can match you with the loan program that best fits you. There are several questions to ask yourself as you consider your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when interest rates rise, a fixed-rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a good option. On the other hand, if you can see yourself moving within several years, an adjustable rate mortgage with a small initial rate could be the ideal way to bring down your monthly payment.
Refinancing to Cash Out
Is "cashing out" your main purpose for your refinance? Your house needs renovating; your son has been accepted to college and needs tuition money; or you have a special family vacation planned. So you'll want to find a loan above the balance remaining on your present mortgage loan.Then you'll want You may not have an increase in your monthly payemnt, however, if you've had your existing mortgage for a long time, and/or your interest rate is high.
Do you want to cash out some home equity to consolidate additional debt? Yes you can! If you have built up some home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a lot of money each month.
Paying it off Faster
Do you hope to build up equity more quickly, and pay off your mortgage more quickly? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and growing your home equity faster, even though your monthly payments will usually be more than you were paying. On the other hand, if your existing long-term mortgage has a low balance remaining, and was closed a while ago, you might be able to make the switch without paying more each month. To help you figure out your options and the many benefits in refinancing, please call us at 218-237-5128. We are here to help you reach your goals!
Want to know more about refinancing? Call us at 218-237-5128.