Unfortunately, when some people think of Minnesota they think of icy cold winters and are neglecting to consider all of the wonderful benefits of living in such a unique location. Sports such as hockey, ice fishing, and ice skating are some of the most exhilarating sports in which one can participate. The Twin Cities area has been developed into a major destination for arts, culture, music, and business, which means that there are lots of jobs available. These advantages, however, have their price. Homeowners are continually struggling to afford long-term investments like college tuition or debt consolidation. In addition, these same families are strapped for cash because they are paying too much for their home each month. These families could benefit largely from refinancing. Refinancing is the process by which a homeowner obtains a new loan for their existing home. The remaining balance on your home will be the principal amount of the loan, and much-needed equity is liberated from your home’s value. Homeowners are also able to take advantage of the most recent developments in financing packages, of which they would have been otherwise unaware.
Quick Minnesota Housing Facts:
- Percent of homeowners in Minnesota: 74.6%
- Percent of renters in Minnesota: 25.4%
- Median annual income in Minnesota: $54,348
- Average credit score in Minnesota: 707
- Best Minnesota city to live in: Chanhassen, MN
- Median Minnesota home value: $115,600
When to Refinance in Minnesota
Refinancing can be an amazing way in which to save a significant amount of money as long as they are done properly. There are a few things about refinancing that each individual who is considering refinancing should know. First of all, you must pay attention to the current conditions of the real estate market. Rates should be significantly lower than what you are paying today, which means that they should be at least 1.5% to 2% lower than your current rate. In addition, you want to make sure that you find a refinancing package that does not have any hidden fees or closing costs associated with committing to your refinancing package. Too often, there are many individuals who end up paying so much money in closing costs and fees, that they do not even save any money from refinancing at all. Finally, be sure to check the terms associated with your current mortgage to make sure that there are no hidden prepayment penalties.
How much house can I afford in Minnesota
One of the biggest problems facing Minnesota’s homebuyers is figuring out how much house you can afford. We have some great mortgage calculators that can help you figure how much home will fit into your monthly budget. Other factors to consider is what loan program will best suit your needs such as: Fixed Rate Mortgages (FRM), Adjustable Rate Mortgages (ARM), or Interest Only Loans (IO). Contact us today and let a mortgage specialist walk you through your loan options.
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