Which Refinancing Loan Program is Best for You?

	Shopping for a mortgage loan? We will be glad to assist you! Give us a call at 952-929-2577. Ready to get started? Apply Online Now.

There are not as many loan program choices as there are applicants, but it seems like it sometimes! Call us at 952-929-2577 and we will match you with the refinance loan program that is best for you. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.

Reducing Your Monthly Payments

Are achieving reduced mortgage payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be the ideal loan program for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low interest rate for the term of your mortgage. If you plan to live in your home for about five more years, a loan with a fixed rate may be a particularly good option for you. On the other hand, if you do see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate may be the best way to bring down your monthly payment.

Getting Out some Cash

Is "cashing out" your primary reason for your refinance? Perhaps you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you need to look for a loan above the balance remaining of your current mortgage.Then you'll want to qualify for a loan program for a higher number than the balance remaining on your existing mortgage loan. You might not have an increase in your mortgage payment, though, if you have had your current mortgage for a while, and/or your loan interest rate is high.

Consolidating Debt

Do you have other debt, maybe with higher interest, that you'd like to consolidate? If you have a fair amount of equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.

Switching to a Shorter Term Loan

Are you dreaming of paying off your loan more quickly, while building up your equity quicker? Consider refinancing with a short-term loan, such as a 15-year mortgage loan. Your mortgage payments will probably be more than they were with a longer term loan, but the pay-off is: you will pay substantially less interest and can build up equity quicker. But, you might be able to switch without a higher monthly mortgage payment if your long term mortgage was closed a while back, and the balance remaining is low enough. You could even pay less! To help you figure out your options and the multiple benefits of refinancing, please contact us at 952-929-2577. We can help you reach your goals!

Want to know more about refinancing? Give us a call: 952-929-2577.