Is refinancing right for you?
This plan allows you to refinance your mortgage for more than you currently owe. The difference and the equity is converted into cash for the homeowner.
If you currently have a high fixed-rate mortgage and the rates have dropped due to market conditions, then you may want to refinance to a low fixed-rate loan. Also, if you have an ARM, you might consider this option in order to get the security of a fixed rate. Even if your adjustable rate is low now, it is not guaranteed to remain that way; but if you get a low fixed-rate loan, then you lock that low rate in for the life of the loan. This option is a good choice if you are not planning on moving within the next five years.
If your main goal is to quickly build up equity and to pay off your mortgage sooner, then the shorter-term loan is probably your best choice. A lot of times, if you refinance to this type of loan, your monthly payments will be higher, but you will pay substantially less interest and your mortgage will be paid off sooner. Also, you would benefit from a larger tax deduction on interest if you move from a 30-year fixed to a 15-year fixed loan. There are some cases, however, in which you may be able to refinance to a shorter-term loan without raising your monthly payment -if you’ve had your current mortgage for enough years.
If your current monthly payments are higher than is comfortable for your financial situation, then you might want to consider refinancing to a longer-term loan. This will result in a decrease in your monthly payments, since you will have more time to repay the loan. Examining your current mortgage and knowing how you would like to improve it are the first steps you need to take when starting the refinancing process. Once you know this, you can choose the option that will best help you achieve your goals.
Mortgage Loan Officer // NMLS #1524787
Your home is likely the largest purchase you will make, so it’s important to work with someone you can trust! As a licensed loan originator, I take great pride in helping you through the home mortgage process for purchasing a new home or refinancing an existing property. I take the time to understand what’s most important to you and to ensure your questions are answered. Whether you want the lowest possible interest rate, a more elaborate financing arrangement, or just need sound advice, I’m here to help find the right loan for you. I enjoy working with experienced and first-time homebuyers and specialize in Conventional, FHA, VA, USDA and Jumbo loans.
NorthPort Lending // NMLS #1868733
(651) 335 6063
319 Barry Ave S. Suite 305, Wayzata, MN 55391
All information is deemed reliable but not guaranteed. Neither mortgage company nor website company shall be responsible for any typographical errors, misinformation, or misprints and shall be held totally harmless. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend.
© 2023 Mike Meyer - NorthPort Funding. Website Managed by LoanSites
Download our Homebuyer’s Guide!