Refinancing: Which Option is for You?
Even though it may seem like it at times, there aren't as many loan programs as there are applicants! Call us at (317) 288-9434 and we can match you with the refinance program that is best for your needs. surveying your options, you should think about what you want to achieve with your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the ideal choice for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in the low interest rate for the life of your loan. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can especially be a great loan option. However, if you can see yourself moving before too long, an adjustable rate mortgage with a low initial rate might be the best way to lower your monthly payment.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Perhaps you want to update your kitchen, take care of your college kid's tuition, or go on a special family vacation. With this in mind, you will need to get a loan above the balance remaining on your current mortgage loan.So you want However, if your interest rate is high now and you've had it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.
Consolidating Your Debt
Perhaps you hope to cash out a portion of the home equity (cash out) to put toward other debt. If you have a fair amount of equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.
Paying it off Sooner
Are you planning to fatten up your home equity faster, and pay off your mortgage loan sooner? If this is your wish, the refinance loan can switch you to a loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, although your mortgage payments will generally be bigger than they were. But, you could be able to switch without a higher monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is low. You may even make it lower! To help you figure out your options and the many benefits in refinancing, please contact us at (317) 288-9434. We will help you reach your goals!
Curious about refinancing? Give us a call: (317) 288-9434.