Refinancing: Which Program is for You?

The number of refinance options available is truly breathtaking. Call us at (317) 288-9434 and we can help you qualify for the perfect refinance program for your financial situation. There are several questions to ask yourself while you review the choices.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? If so, the best option could be a low fixed-rate loan. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your loan, even if interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise option. However, an ARM with a low intitial payment could be a better way to reduce your monthly payments if you expect to move within the near future.

Refinancing to Cash Out

Are you planning to cash out some of your home equity with your refinance? Your house needs renovating; your daughter has gone to college and needs tuition money; or you are taking your family on a cruise. With this in mind, you'll need to qualify for a loan above the remaining balance on your current mortgage.In this case, you'll need However, if your loan interest rate is high now and you have held it for a long time, you could be able to accomplish your goals without making your mortgage payments increase.

Consolidating Your Debt

Do you hold other debt, maybe with higher interest, that you want to consolidate? If you have enough home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a chunk of cash each month.

Switching to a Shorter Term Loan

Do you plan to build up equity more quickly, and pay off your mortgage sooner? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. You will be paying less interest and growing your equity more quickly, although your payments will usually be more than you were paying. But, you might be able to make the change without much increase in your monthly payment if your long term mortgage was closed a while back, and the remaining balance is small. You may even pay less! To help you determine your options and the multiple benefits of refinancing, please call us at (317) 288-9434. We are here for you.

Curious about refinancing your home? Call us at (317) 288-9434.

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