Which Refinancing Option is Right for You?
There are an enormous number of refinancing programs available to borrowers. Call us at (317) 288-9434 and we can work with you to qualify you for the best refinance program for your needs. There are several things to have in mind while you consider your options.
Making Your Payments Lower
Are achieving better mortgage payments and an improved rate your main refinance goals? In that case, getting a low, fixed-rate loan might be a wise option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in the low interest rate for the life of your mortgage. This can be particularly a good option if you don't plan to sell your home within the next five years or so. On the other hand, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate could be the ideal way to bring down your monthly payments.
Are you planning to cash out some of your home equity in your refinance? Your house needs new carpet; your son has been accepted to college and needs tuition; or you are planning a special vacation. Then you want to find a loan above the remaining balance on your existing mortgage loan.Then you want to find a loan program for a bigger number than the balance remaining on your existing mortgage loan. 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 an increase in your mortgage payment.
Maybe you want to pull out some equity in your home (cash out) to put toward other debt. If you have a fair amount of equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) may help save you a chunk of cash every month.
Getting a Shorter Term Loan
Do you plan to build up equity more quickly, and have your mortgage paid off more quickly? In that case, you'll need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage loan. The monthly payments will probably be higher than they were with a longer term mortgage, but in exchange, that you will pay quite a bit less interest and will build up equity quicker. But, you might be able to switch without a bigger monthly payment if your longer term mortgage was closed a while ago, and the remaining balance is low. You could even make it lower! To help you determine your options and the numerous benefits in refinancing, please call us at (317) 288-9434. We are here for you.
Want to know more about refinancing? Call us at (317) 288-9434.