Which Refinancing Loan Program is Right for You?
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The number of refinance options available to borrowers is truly breathtaking. Contact me at 612.816.1511 and I can match you with the refinance loan program that best fits you. In order to review your options, you should think about what you want to achieve with the refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan could be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in the low rate for the term of your mortgage. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a wise loan option. However, an ARM with a low initial payment may be a smarter way to reduce your mortgage payments if you expect to move within the near future.
Are you planning to cash out some of your home equity in your refinance? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you plan to renovate your home. So you need to find a loan for more than the remaining balance on your current mortgage.So you'll want to qualify for a loan for a higher amount than the remaining balance on your present mortgage loan. You may not have an increase in your monthly payment, however, if you have had your existing mortgage loan for a while, and/or your interest rate is high.
Maybe you want to pull out some of the equity (cash out) to use toward other debt. If you have enough equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) could be able to save you a lot of cash each month.
Building up Equity Faster
Are you dreaming of paying your loan off more quickly, while beefing up your equity faster? You should consider refinancing to a short-term loan, like a 15-year mortgage. Your monthly payments will likely be more than with your longer term mortgage, but the pay-off is: you will pay considerably less interest and can build up equity quicker. Conversely, if your current longer term mortgage has a small remaining balance, and was closed a number of years ago, you may 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 me at 612.816.1511. I am here for you.