Refinancing: Which Option is for You?
There are a huge number of refinancing programs available to borrowers. We can guide you to locate the refinance program that can fit your financial situation the best. Contact us at (317) 288-9434 to begin the process. There are some general things to bear in mind as you review the options.
Making Your Payments Lower
Are getting lower payments and a lower rate your main refinance goals? In that case, applying for a low, fixed-rate loan may be a good option for you. Perhaps you are presently 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 if rates rise later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low rate for the life of your mortgage. 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 great loan option. However, if you do see yourself moving within several years, an ARM with a low initial rate could be the ideal way to bring down your monthly payments.
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Maybe you want to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. In this case, you will need to find a loan higher than the balance remaining on your existing mortgage loan.Then you need You might not have an increase in your mortgage payemnt, however, if you have had your current loan for a while, and/or your loan interest rate is high.
Perhaps you'd like to pull out some of the equity (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can possible save several hundred dollars a month.
Building up Equity More Quickly
Do you want to build up home equity more quickly, and have your mortgage paid off more quickly? Then, you want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. You will be paying less interest and growing your equity faster, although your mortgage payments will likely be more than they were. But, you may 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 enough. You could even pay less! To help you figure out your options and the numerous benefits of refinancing, please call us at (317) 288-9434. We would love to help you reach your goals!
Want to know more about refinancing? Call us at (317) 288-9434.