Which Refinancing Loan Program is Right for You?
There are an enormous number of refinancing options available to borrowers. Call us at (317) 288-9434 and we'll work with you to qualify you for the best refinance loan program to fit your financial situation. In order to review your choices, you can think about your goals for the refinance.
Making Your Payments Lower
Are achieving better monthly payments and a lower rate your main refinance goals? Then a good choice could be a low fixed-rate loan. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you close a fixed rate mortgage, you set the low rate for the life of your loan. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a great choice. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Getting Out some Cash
Are you hoping to cash out some of your home equity in your refinance? Your house needs new carpet; your son has gone to college and needs tuition; or you are planning a special vacation. In this case, you'll want to apply for a loan above the balance remaining on your existing mortgage.Then you will want You may not have an increase in your monthly payemnt, though, if you've had your current mortgage loan for a number of years, and/or your interest rate is high.
Maybe you hope to cash out some of the equity (cash out) to put toward other debt. If you have the home equity to make it work, taking care of other high interest debt (like credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars in your monthly budget.
Getting a Shorter Term Loan
Do you plan to build up home equity more quickly, and pay off your mortgage sooner? If this is your hope, your refinance can change you to a loan program with a shorter term, like a 15 year loan. Although your mortgage payment amount will probably be more, you will save on interest; so your home equity will build up faster. On the other hand, if your current longer term mortgage has a small balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. 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 your home? Give us a call: (317) 288-9434.