Which Refinancing Option is Best for You?
There are a huge number of refinancing options available to borrowers. We can guide you to find the loan program that will fit your financial situation the best. Call us at (317) 288-9434 to get things started. There are several things to have in mind as you review your options.
Making Your Payments Lower
Are getting better monthly payments and an improved rate your main reasons for refinancing? In that case, the best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low rate for the term of your loan. If you expect to live in your home for at least five more years, a fixed rate mortgage may be an especially good fit for you. However, an ARM with a initial low payment may be a wiser way to reduce your monthly payments if you see yourself moving in the next few years.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Your home needs renovating; your daughter has been accepted to University and needs tuition money; or you are planning a special vacation. Then you will need to find a loan above the remaining balance on your existing mortgage.In that case, you will want to qualify for a loan for a bigger amount than the remaining balance on your existing mortgage. If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you have other debt, perhaps with higher interest, that you'd like to consolidate? If you have enough home equity, taking care of other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash each month.
Getting a Shorter Term Loan
Do you hope to build up equity more quickly, and have your mortgage paid off more quickly? Then, you want to look into refinancing to a short term mortgage - like a fifteen-year mortgage program. Your mortgage payments will likely be more than they were with the long-term loan, but in exchange, you will pay substantially less interest and can build up equity more quickly. But, you might be able to make the change without a bigger monthly mortgage payment if your long term loan was closed a while back, and the remaining balance is small. You may even make it lower! To help you figure out your options and the many benefits in refinancing, please call us at (317) 288-9434. We would love to help you reach your goals!
Curious about refinancing? Call us: (317) 288-9434.