Refinancing: Which Option is for You?
There are a huge number of refinancing options available to borrowers. Contact us at 812-945-4400 and we will match you with the refinance program that fits you best. What are your reasons for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Lowering Your Payments
Are achieving lower monthly payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — with which the interest rate varies. Even if rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you set the low interest rate for the life of your mortgage. This can be particularly a wise idea if you aren't expecting a move 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 might be the best way to lower your monthly payments.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Perhaps you want to pay for home improvements, take care of your college kid's tuition, or take your family on a dream vacation. Then you will want to find a loan for more than the remaining balance of your current mortgage.In that case, you'll You will need to get a loan for more than the current balance with your current home loan in this case. However, if your interest rate is currently high and you've had it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.
Consolidating Your Debt
Maybe you want to cash out a portion of the equity (cash out) to use toward other debt. If you have the equity in your home for it, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars in your monthly budget.
Paying it off Faster
Do you hope to build up equity more quickly, and pay off your mortgage faster? Consider refinancing with a short-term loan, like a 15-year mortgage loan. Although your monthly payments will usually be increased, you can be paying less interest; so your equity will build up faster. However, if you have had your existing thirty year mortgage for a number of years and the remaining balance is relatively low, you could be able to do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits in refinancing, please call us at 812-945-4400. We are here for you.
Want to know more about refinancing your home? Call us: 812-945-4400.