Why Refinance?

There are several reasons it may be the right time to refinance your present mortgage including getting a lower interest rate. As a general rule, if current rates are about 1% below the rate you have now, you should consider refinancing. The rate isn't the only factor to consider, however.

Consolidate Your First Mortgage and an Equity Loan: Equity loan rates are usually higher than rates for first mortgages. It may make sense to consolidate both loans to save money over what you are paying separately.

Consolidate other Debt: Credit card debt usually carries a much higher interest rate than first mortgages and the interest is not tax deductible. Consider paying off non-mortgage debt and reduce your taxes at the same time. Consult your tax advisor for details.

Use the Equity in your Home for Other Needs: You can refinance to get cash for home improvements, pay college tuition, or to make a major purchase such as a second home or cabin.

Convert an Adjustable Rate Mortgage (ARM) to a Fixed Rate: If you have an ARM loan, you can refinance to a fixed rate to get away from variable payments. It's more difficult to calculate savings in this case due to the variable rate feature of an ARM, but combining this purpose with another purpose like getting cash out may make sense in your particular situation. Contact your local mortgage originator for additional information and assistance.

The Refinance Process

Figure it Out: Besides a lower rate, the most important thing is to figure out the time it will take to recover your closing costs and begin saving money. It is essential to know you will live in the house long enough to realize the savings. In most cases, you can finance the closing costs into the new loan, but it is still important to calculate the payback.

Choose the Right Mortgage Type: How do you choose the right mortgage type? See our Loan Types to help you find out.

Apply For Your Refinance Loan: Because we make all our loan decisions locally, we can let you know if you're approved within hours. We will ask for documentation of your income and your assets as part of this process. You'll also need to give us the title to the property, so we can arrange for it to be updated. And we'll need a check for the appraisal, so we can order that. You can apply online now.

Close Your Loan: Learn about the closing process and the right of rescission.
Conventional Fixed, 15 Years
Rate 3.250% | APR 3.486%
Conventional Fixed, 20 Years
Rate 3.625% | APR 3.810%
Conventional Fixed, 30 Years
Rate 3.750% | APR 3.883%
FHA, 30 Years
Rate 3.375% | APR 4.528%
VA, 30 Years
Rate 3.500% | APR 3.624%
December 14

Duluth, MN