Refinance Mortgage Options in Wisconsin & Minnesota

Refinance Mortgage Features

At Forward Bank, we offer a variety of refinance mortgage options for homeowners in Wisconsin and Minnesota, designed to help you lower your interest rate, reduce monthly payments, or access your home’s equity. Refinancing means replacing your existing mortgage with a new one — often with different terms, a new interest rate, or a new loan amount. Homeowners refinance to better align their mortgage with their current financial goals.

Common reasons to refinance include:

• Lower interest rates: Take advantage of lower rates to reduce your monthly payments and save over the life of your loan.
• Access home equity: Tap into your home’s equity for renovations, debt consolidation, or other financial needs.
• Flexible terms: Choose new loan terms that better align with your current financial situation and goals.

In short, refinancing gives homeowners flexibility — helping them save money, build equity faster, or access funds for other financial priorities.

Who Qualifies for a Refinance?

Not every homeowner will benefit equally from refinancing, but many Wisconsin and Minnesota homeowners may qualify with the right financial profile. Here’s what lenders typically look for when reviewing a refinance application:

• Credit Score: Most refinance programs require a minimum credit score (often 620 or higher), though stronger credit may unlock better rates.
• Debt-to-Income Ratio (DTI): Lenders generally prefer a DTI below 45%. A lower ratio demonstrates that you can comfortably handle your new loan payment.
• Loan-to-Value Ratio (LTV): This measures how much you owe compared to your home’s current value. Many programs allow refinancing up to 80% LTV, though some may offer flexibility.
• Home Equity: Having at least 20% equity in your home can help you avoid private mortgage insurance and may qualify you for better loan terms.
• Property Type: Most primary residences, second homes, and investment properties can qualify, depending on the loan type.
• Stable Income & Employment: Proof of consistent income and employment helps demonstrate repayment ability.

Choosing the Right Refinance Option

Choosing the right mortgage refinance can be tricky, but understanding your options makes the decision easier. The two most common types of refinancing are rate-and-term and cash-out — each designed for different financial goals and situations.

Rate-and-Term Refinance
This option replaces your existing mortgage with a new one that has a different interest rate, loan term, or both. It’s ideal if you want to:

• Lower your interest rate and monthly payment
• Pay off your loan faster with a shorter term
• Switch from an adjustable-rate mortgage to a fixed-rate mortgage

Cash-Out Refinance
A cash-out refinance allows you to tap into the equity you’ve built in your home. You take out a new, larger loan — and receive the difference in cash. This can be a smart way to:

• Fund home improvements or renovations
• Consolidate high-interest debt
• Pay for major expenses, like education or medical costs

Both options can help you align your mortgage with your long-term financial goals. If you’re unsure which type of refinance makes sense for you, a mortgage professional can review your situation and help you find the best fit.

Moving Homeowners Forward

Choosing the right mortgage can be tricky, but understanding your options makes it easier. Whether you’re interested in a rate-and-term refinance or a cash-out refinance, our expert team is here to guide you through the process and find the best solution for your financial goals.