Which Refinancing Option is Right for You?
There are a huge number of refinancing programs available to borrowers. Contact us at (317) 288-9434 and we will match you with the loan program that fits you best. There are several questions to ask yourself as you look at the options.
Lowering Your Payments
Are getting lower mortgage payments and a better rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a wise choice. However, an ARM with a initial low payment may be a better way to reduce your payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Are you planning to cash out some of your home equity in your refinance? Maybe you need to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. So you'll want to get a loan above the remaining balance of your current mortgage loan.With this goal, you want If you've had your current mortgage loan for a number of years and/or have a mortgage with a high interest rate, you may be able to do this without making your mortgage payment bigger.
Do you hold other debt, perhaps with a higher interest rate, that you want to consolidate? If you have the equity in your home to make it work, taking care of other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars each month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while beefing up your home equity more quickly? You should consider refinancing to a shorterterm loan, like a 15-year mortgage. Even though your monthly payments will usually be increased, you will be paying less interest; so your equity amount will rise up faster. However, if you have held your existing 30-year loan for a number of years and the remaining balance is rather low, you might be do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits in refinancing, please call us at (317) 288-9434. We are here for you.
Want to know more about refinancing? Call us: (317) 288-9434.