Refinance Your Home Now | Valley Mortgage Blog about Refinancing


Great reasons to refinance right now with Valley Mortgage, Inc. of Fargo, ND.

Interest rates are near the lowest they’ve been in decades – you’ve likely heard it a million times by now, but does that mean you should refinance your home loan? It seems like everyone around you is refinancing, but does it make sense for you?

Refinancing isn’t always about the interest rate (although it can be a big factor), there are plenty of other reasons you should refinance right now to make the most of the investment in your home.

1. You want to reinvest in your home

Have you thought about doing home renovations but don’t have the capital? Rather than racking up credit card debt or paying the high interest rates personal loans charge, you can tap into your home’s equity and get the necessary capital.

Think of it as reinvesting in your home. You refinance to take out your home’s equity, getting a larger mortgage, but you increase your home’s value with the renovations. In the end, you come out ahead and possibly with a lower interest rate out of it because you have an investment that’s now worth more money.

2. Your credit score improved

When you buy a home, lenders look at your credit score to determine your interest rate. If you had ‘bad credit’ you may have gotten approved but at a much higher rate than is necessary at this point or you may even be in a loan program, you don’t need any longer.

If your credit score has increased, see if you qualify for a conventional loan or even an FHA loan. Neither requires ‘perfect credit’ but does allow you to save money on interest and in the conventional loan’s case, you may even avoid PMI. Even if your credit score increased by 50 points, it could make a big difference in your interest rate.

3. Eliminate PMI

If you put less than 20% down on your home, you likely pay Private Mortgage Insurance. If you took out FHA financing, you definitely pay mortgage insurance.

If your home’s value increased since you bought the home, you may be able to refinance into a conventional loan with NO PMI. Not only will you be able to take advantage of today’s low rates, but you’ll save money by not paying monthly insurance premiums too.

4. You want to get out of an adjustable rate loan

If you currently have an ARM (adjustable rate mortgage), you may not be happy with how your rates change. At first, the ARM loan is great because it has a lower introductory rate. As the rates adjust, your payment becomes unpredictable and sometimes even unaffordable.

With today’s low rates, it’s a great time to refinance your home loan and get into a fixed rate loan giving you some predictability.

5. You want to lower your loan’s term

If you have a 30-year term, but your income increased, you may be ready to cut that term in half. With today’s low rates, you can save a lot of money on a 15-year term by cutting the interest rate down and cutting the term in half.

The lower loan term allows you to pay your loan off faster, gain equity in your home quicker, and it could save you thousands of dollars.

6. You need or want money for another purpose

You built the equity in your home with your own money and your good eye in spotting a good opportunity. Whether your home has appreciated and you paid the mortgage balance down or you built equity just by paying the mortgage down, it’s your hard-earned money.

If you need money for debt consolidation, to pay for a large expense, cover college costs, or even to use it as an emergency fund, refinancing now will give you access to the cash you need at some of the lowest interest rates available.

Are you Ready to Refinance your Home Loan?

It’s a great time to refinance your loan. Even if you lower your rate slightly, the savings add up over the loan’s term. $100 savings a month over 30 years is a savings of $36,000 over the life of the loan. 

If you’ve decided it’s time to refinance your home loan let’s talk. Our Valley Mortgage professionals are happy to walk you through your options and match you up with the perfect program. We have many options available for borrowers with nearly any credit score, amount of equity, or financing requirements.

Contact us for a no-obligation conversation. Valley Mortgage is the largest independent mortgage lender in North Dakota and northern Minnesota. We’ve be helping folks like you for more than 38 years. If you’ve haven’t reviewed our website, please click here. Please call us at 701-461-8450 to get all the details about refinancing. There is no cost, no obligation. We are independent and we do all the processing right here in our Fargo, ND office