Refinancing: Which Option is for You?
The number of refinance options available is truly breathtaking. Call us at (317) 288-9434 and we will work with you to qualify you for the right refinance loan to fit your situation. There are some general questions to ask yourself as you consider your choices.
Lowering Your Payments
Is your refinance primarily to lower your rate and monthly payments? Then a good option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the loan, even as interest rates rise. If you expect to live in your home for at least five more years, a fixed rate mortgage may be a particulary good option for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced payments.
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 college and needs tuition money; or you have a special family vacation planned. With this in mind, you'll need to find a loan above the remaining balance on your present mortgage.In this case, you want However, if your loan interest rate is currently high and you've had it for a long time, you may be able to reach your goals without making your monthly payments rise.
Consolidating Your Debt
Do you want to pull out a portion of your equity to consolidate other debt? Great plan! If you own any debt with high interest (such as credit cards or car loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of home equity.
Switching to a Shorter Term Loan
Are you dreaming of paying your loan off faster, while beefing up your equity quicker? You should consider refinancing to a short-term loan, like a 15-year mortgage. You will be paying less interest and growing your home equity more quickly, even though your payments will likely be bigger than they were. However, if you have held your existing 30 year loan for a number of years and the loan balance is somewhat low, you might be able to do this without increasing your monthly mortgage payment — you may even be able to save! To help you determine your options and the multiple benefits in refinancing, please contact us at (317) 288-9434. We are here for you.
Curious about refinancing your home? Call us: (317) 288-9434.