Which Refinancing Option is Best for You?
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Even though it seems like it sometimes, there are not as many refinance options as there are applicants! We can guide you to find the loan program that can fit your situation the best. Contact us at 952-985-4113 to begin the process. surveying your choices, you can think about your goals for your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you set that low rate for the life of your mortgage. If you are expecting to stay in your home for about five more years, a loan with a fixed rate may be a particularly good fit for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your equity with your refinance? Maybe you want to pay for home improvements, take care of your college kid's tuition, or take a cruise. In this case, you want to apply for a loan for more than the remaining balance of your existing mortgage.In this case, you'll want to need to qualify for a loan program for a bigger number than the balance remaining on your current mortgage loan. If you've had your current mortgage for a long time and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment bigger.
Consolidating Your Debt
Maybe you'd like to pull out some of the equity in your home (cash out) to put toward other debt. If you have a fair amount of equity, paying off 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 cash every month.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while beefing up your equity quicker? In that case, you'll want to find out about refinancing to a short term mortgage loan - such as a fifteen-year loan. Although your mortgage payment amount will likely be more, you will save on interest; so your equity will build up faster. But, you might be able to make the change without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the remaining balance is small. You may even pay less! To help you determine your options and the many benefits of refinancing, please call us at 952-985-4113. We are here for you.
Want to know more about refinancing your home? Give us a call: 952-985-4113.