Which Refinancing Loan Program is Best for You?
Even though it may seem like it sometimes, there are not as many refinance loan choices as there are borrowers! Call us at (317) 288-9434 and we can work with you to qualify you for the best refinance loan for your financial needs. In the interest of looking at your choices, you need to determine what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are getting lower mortgage payments and an improved rate your main reasons for refinancing? If so, getting a low, fixed-rate loan might be a wise option for you. Perhaps you are currently in a loan with a high, fixed interest rate, or a loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even when rates rise later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low interest rate for the term of your mortgage. If you expect to live in your home for about five more years, a fixed-rate loan may be a particulary good option for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced monthly payments.
Is "cashing out" your primary reason for your refinance? Maybe you want to pay for home improvements, take care of your college kid's tuition, or take your dream vacation. With this in mind, you will need to find a loan above the remaining balance on your current mortgage.So you need However, if your interest rate is high now and you've held it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.
Do you want to cash out some home equity to consolidate additional debt? Yes you can! If you own any debt with higher interest (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of home equity.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while building up your equity more quickly? If this is your plan, your refinance can change you to a loan program with a shorter term, for example: a 15 year loan. You will be paying less interest and growing your equity faster, even though your mortgage payments will usually be bigger than you were paying. However, if you've had your existing thirty year mortgage for a number of years and the remaining balance is relatively low, you could be do this without raising your mortgage payment — you might even be able to save! To help you figure out your options and the many benefits in refinancing, please contact us at (317) 288-9434. We can help you reach your goals!
Want to know more about refinancing your home? Give us a call: (317) 288-9434.