Choosing a Refinancing Option
There are a huge number of refinancing options available to borrowers. We can help you find the refinance program that can fit your situation the best. Call us at (317) 288-9434 to begin the process. In the interest of looking at your options, you need to determine what you want to achieve with the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best option might be a low fixed-rate loan. Perhaps you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the interest rate varies - an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of your loan, even if interest rates rise. If you aren't expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a wise choice. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced payments.
Refinancing to Cash Out
Is your refinance goal primarily to pull out some equity for an infusion of cash? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. So you will need to find a loan higher than the remaining balance on your current mortgage loan.With this goal, you want to need to qualify for a loan program for a bigger amount than the balance remaining on your present mortgage loan. However, if your loan interest rate is currently high and you've held it for a long time, you may be able to achieve your goals without making your mortgage payments rise.
Do you want to cash out some equity to consolidate additional debt? Yes you can! If you have built up some equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) may be able to save you a chunk of money each month.
Paying it off Sooner
Are you hoping to fatten up your equity faster, and get your mortgage paid off sooner? Then, you'll need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your home equity faster, even though your monthly payments will generally be bigger than you were paying. But, you might be able to switch without a higher monthly payment if your longer term loan was closed a while back, and the remaining balance is somewhat low. You could even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at (317) 288-9434. We are here for you.
Curious about refinancing? Call us: (317) 288-9434.