Which Refinancing Program is Right for You?
There aren't as many loan programs as there are applicants, but it seems like it sometimes! Call us at (317) 288-9434 and we will match you with the loan program that is best for your needs. In order to review your choices, you should list your goals for the refinance.
Reducing Your Monthly Payments
Are getting better payments and a lower rate your main refinance goals? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Even when 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 loan. If you expect to live in your home for at least five more years, a loan with a fixed rate may be an especially good choice for you. However, an ARM with a low intitial payment could be a better way to lower your mortgage payments if you expect to move in the near future.
Are you hoping to cash out some of your equity in your refinance? Maybe you want to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. With this in mind, you'll need to apply for a loan higher than the remaining balance on your existing mortgage loan.Then you'll need You may not have an increase in your mortgage payemnt, though, if you've had your current mortgage for a long time, and/or your interest rate is high.
Maybe you'd like to cash out some of the equity in your home (cash out) to put 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 (such as credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars each month.
Building up Equity More Quickly
Are you hoping to fatten your home equity faster, and pay off your mortgage sooner? If this is your goal, your refinance mortgage can change you to a mortgage loan program with a shorter term, like a 15 year loan. The payments will likely be higher than they were with your long-term mortgage loan, but in exchange, that you will pay quite a bit less interest and can build up equity more quickly. But, you might be able to switch without much increase in your monthly payment if your long term mortgage was closed a while ago, and the remaining balance is small. You could even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at (317) 288-9434. We can help you reach your goals!
Curious about refinancing? Give us a call at (317) 288-9434.