Tag Archives: home mortgage company in Minnesota

5 tips to refinance

The Resolution you Should Keep. Refinance.

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5 reasons to refinance

“Should I refinance my mortgage?”

This is one of the most common questions we help our clients answer. 

When you refinance your existing mortgage, you are essentially paying off the existing mortgage debt and replacing it with a new loan. Many of the same costs are involved in refinancing a loan as are in first−time financing.

There is an old adage in the mortgage business that states that if you can improve your interest rate by at least two percentage points, then it is a good time to refinance. While that may work as a general rule of thumb, the truth is that there are many reasons to refinance. Here are the top five we see.

1. Lower Interest Rate 

Securing a lower interest rate is one of the top reasons for refinancing. A lower rate can make a large different in your monthly payments, and save you money on the financing fees! 

 

2. Build Equity Faster 

If you’re in a position to make a higher monthly payment due to a salary increase or other good fortune, you may want to refinance from a 30-year loan to a short (15 or 20 year) term loan. Adjusting the term enables you to build equity faster and save a large amount of money on the interest paid over time! 

 

3. Change your Loan Program 

Some homeowners who start in an ARM (Adjustable Rate Mortgage) discover they’d rather switch to a more stable Fixed Rate mortgage. While an ARM may have been the more attractive loan program when you first purchased, we can compare different Fixed Rate programs to find which would save you more money. 

 

4. Credit Score Improvement 

If you’ve increased your credit score since you first applied, you may be in position to refinance with a lower rate with your higher score! We’ll evaluate your current loan, then compare the rates with your new score to find you the best program that’ll lower your monthly payments! 

 

5. Getting Cash Out 

With a Cash Out Refi you’re able to tap into the equity that you’ve built in your home. You may want to put money towards home improvements, send a child to school, or pay off other debt with the equity you’ve accrued through your mortgage.  

 

Before you decide to refinance, think back to when you purchased your home.

  • Did you pay points to get a lower rate?
  • Has it been long enough that you’ve made your money back?
  • Is there a pre-payment penalty on your loan?
  • What is the purpose of this refinance? 

Refinances EMPOWER you to change

the terms of your original mortgage!

All of these factors are important to consider when you’re weighing if you should refinance your home. Give us a call at 952-405-2090 to set up your FREE initial consultation. We can help you determine if now is the right time for you to refinance. 

Are you ready to resolve your refi questions?

Refinance: refinance

 verb

re·​fi·​nance | \ ˌrē-fə-ˈnan(t)s  , (ˌ)rē-ˈfī-ˌnan(t)s, ˌrē-(ˌ)fī-ˈnan(t)s \

refinanced; refinancing; refinances

Definition of refinance

: to renew or reorganize the financing of something : to provide for (an outstanding indebtedness) by making or obtaining another loan or a larger loan on fresh terms refinance a mortgage

2018 Financial Resolutions

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It’s not too late to start your 2018 Resolutions!

More than 25% of people who make a New Year’s Resolution include a financial goal on their list.  Here are the four most common finance-related New Year’s Resolutions, and how you can easily follow them throughout the entire year!

 

1) Monitor Your Credit Score

Don’t put yourself in a situation where you apply for a loan and have to hope your credit score is good enough. Monitoring your credit score is easy to do and should be done every few months. Keeping an eye on your credit is not only beneficial when applying for a home mortgage loan or credit card, but you’ll also be able to see if there are any fraudulent accounts opened in your name. Federal law allows you to get a FREE copy of your credit report every 12 months from each credit reporting company to determine if the information on your credit report is accurate and up to date. You can check your credit for free at www.annualcreditreport.com.

2) Track Your Expenses

The best way to manage your money is to know exactly where it is going. You can start tracking your expenses by writing down where you’re spending your money. You may be surprised to find out how much you’re actually spending, and how those Target runs and extra items at the grocery store really do add up. Once you see your spending habits, you’ll be able to find areas you can cut back and set a realistic budget.

3) Cash Diet

 After the holidays, you and your bank account may be feeling a little sluggish. If you’re like me, you’ve indulged in too many cookies and drinks and swiped your card too many times over the last few months. Consider helping your waistline and your budget by going on a cash diet by only paying with cash. When physically handing over cash, you’re seeing the money leaving your possession at that very moment. Unlike when you swipe your card, you generally won’t experience the same feeling until you check your bank statement to see all of the transactions at which point it’s too late.

4) Save

I am fairly sure that there isn’t a single person who hasn’t thought “I wish I would have saved more” at one time in their life. It is never too late to start saving, and it’s ok to start small. The easiest way to start is to set up automatic transfers from your checking account to your savings account every month. Setting a goal will also help you save. It’s great to say, “I’ll save more” but setting a specific goal will make it easier for you to see your progress and achieve your goal.

 

If your New Year’s Resolution is to save for your next home, ask our Twin Cities mortgage team about our low-down home mortgage payment options. You may only have to save 1% of the home’s value to be approved for a home loan! Rainbow Mortgage Inc. is one of the few independent home mortgage companies in Minnesota to offer this unique program. Learn more about our 1% Down Payment program and start your 2018 New Year’s Resolution today!       

Rainbow Mortgage Inc.

3300 Edinborough Way #550

Edina, MN 55435

 NMLS# 345827 || 952-405-2090|| www.rainbowmortgageinc.com|| dave@rainbowmortgageinc.com