Loan Options

Refinance with Clarity

Lower your payment, shorten your term, or tap your equity, without the guesswork.

Where people come first and mortgages come naturally.

Understanding Where To Start

The Big Picture

Refinancing can lower your payment, shorten your term, or tap equity for projects and priorities. Skim the options below, then get pre-qualified and we’ll run the numbers side-by-side so you can choose with confidence.

Replace your current mortgage with a new one to change the rate, the term, or both

Use the equity you’ve built to borrow against your home

It's a form of a “credit” that gets credited until you have “no cost” left on the loan.

What is a

Standard Refinance

Replace your current mortgage with a new one to change the rate, the term, or both—without taking extra cash at closing. It’s the classic “lower my payment” or “pay it off faster” refi.

How it works:

We verify income/credit, order an appraisal if required, and price options (e.g., 30-yr vs. 15-yr). If you have an existing FHA loan, a Streamline Refinance may allow reduced documentation and no cash-out.

Best For...

  • Homeowners chasing a lower payment or shorter payoff

  • Borrowers who don’t need cash back and want a Rate & Term refinance.

  • Anyone looking to reduce their overall monthly obligations.

Pros

  • Potentially lower monthly payment or faster payoff

  • Can move from ARM to fixed (or vice-versa)

  • FHA & VA both have streamline refinances VA knows as IRRRLs - “Interest rate reduction refinance loans” may reduce paperwork compared to a standard FHA or VA loan.

Considerations

  • Resetting to a new 30-yr term may increase total interest paid over time

  • Appraisal/credit requirements vary by program

Not sure which loan fits?

That’s what we’re here for. Tell us a bit about your budget and timeline, we’ll compare your options side-by-side and recommend the best path.

What is a

Cash-Out Refinance

Use the equity you’ve built to borrow against your home.

How it works:
Cash-Out Refinance: You replace your current loan with a larger one and take the difference in cash at closing. Closing costs and a bigger loan amount mean you’ll evaluate payment/term tradeoffs.

Best For...

  • Funding home improvements, consolidating higher-rate debts, or big one-time expenses

  • Owners who want to keep a low-rate first mortgage (consider HELOC/second)

  • Borrowers who prefer fixed payments (home-equity loan) vs. flexible draws (HELOC)

Pros

  • Access to large, typically lower-rate financing vs. many unsecured loans

  • Choose the structure: single new loan (cash-out)

  • Consolidate debt all into one payment

Considerations

  • You’re increasing debt secured by your home, missed payments can risk foreclosure; weigh benefits vs. costs carefully.

  • Cash-out raises your loan amount (and often your payment)

What is a

No-Cost Refinancing

You’ll see ads for NO COST loans. The costs are covered by a lender credit through the interest rate.  If that interest rate is lower than your current rate, it might make sense to refinance.

How it works:
We price two paths:

Lender-credit route (slightly higher rate, lender covers part/all of costs), or

Finance the costs (add them to your new loan). Then we compare break-even and total cost so you can pick what truly saves.

Best For...

  • Homeowners who plan to sell or refi again before a long break-even

  • Borrowers who prefer to preserve cash at closing

  • Since there is no closing costs, it will not add a lot to your loan amount.

Pros

  • Little to no cash due at closing

  • Can still capture payment relief if the rate environment makes sense

  • Doesn’t add to your loan amount and if interest rates go lower, you won't have refinance remorse.

Considerations

  • A higher rate or bigger balance often means higher total cost over time

  • You still pay closing costs, just indirectly (credit) or later (financed)

  • Your savings won’t be as much per month as a standard refinance

Compliance and Disclaimer

Programs, rates, and eligibility change, your exact terms depend on your credit, income, property, and program rules. We’ll confirm details and provide written estimates before you decide.


Equal Housing Lender • NMLS #295556 • Minnesota-based since 2000

Beyond the Mortgage: Helping You Find Your Home

Securing the right loan is just the beginning. Through our Homebuyer Concierge Service, we’ll personally connect you with recommended Minnesota realtors who know the market inside and out. It’s our way of making sure you have the right team beside you, from pre-approval to closing day.

At Equity Source Mortgage, we’re more than loan officers, we’re your lifelong partners in homeownership.

Whether it’s your first home, your next home, or simply making your current one the right fit through refinancing, we’re here to guide you with clarity, care, and confidence.

NMLS #295556

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