Which Refinancing Program is Right for You?
When you are overwhelmed with so many choices, it may seem as if there are even more loan programs than applicants! We can help you find the refinance program that will fit your needs the best. Call us at (317) 288-9434 to get started. There are several questions to ask yourself as you review the choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice could be a low fixed-rate loan. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the mortgage, even if interest rates rise. If you are planning to live in your home for at least five more years, a fixed-rate loan may be an especially good option for you. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower mortgage payments.
Refinancing to Cash Out
Is your refinance goal primarily to "cash out" some home equity? Your house needs improvements; your son has been accepted to University and needs tuition money; or you are planning a special vacation. In this case, you want to get a loan for more than the balance remaining on your present mortgage.In that case, you will want to need to find a loan program for a higher number than the balance remaining on your current mortgage loan. If you've had your existing mortgage loan for a long time and/or have a mortgage with high interest, you may be able to do this without making your monthly payment higher.
Do you want to cash out a portion of your home equity to consolidate other debt? Good idea! If you have a fair amount of home equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could be able to save you a chunk of money every month.
Getting a Shorter Term Loan
Do you plan to build up equity more quickly, and have your mortgage paid off faster? Then, you'll need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. Although your monthly payments will usually be more, you will save on interest; so your equity amount will build up faster. However, if you've had your existing 30-year loan for a long time and the remaining balance is rather low, you could be able to do this without raising your monthly payment — you may even be able to save! To help you determine your options and the multiple benefits of refinancing, please call us at (317) 288-9434. We can help you reach your goals!
Want to know more about refinancing? Give us a call: (317) 288-9434.