Which Refinancing Option is Right for You?
Although it seems like it sometimes, there aren't as many loan options as there are applicants! Contact us at 219-548-2255 and we can match you with the refinance loan program that fits you best. There are several things to have in mind as you look at the choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate 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 term of the mortgage loan, even when interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a good loan option. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.
Refinancing to Cash Out
Are you refinancing mainly to pull out some home equity for an infusion of cash? Your home needs improvements; your son has been accepted to University and needs tuition; or you have a special family vacation planned. So you will want to find a loan higher than the remaining balance of your current mortgage.So you will want to need to find a loan program for a higher amount than the remaining balance on your present mortgage loan. However, if your mortgage rate is currently high and you've held it for a long time, you could be able to accomplish your goals without making your monthly payments bigger.
Do you want to cash out a portion of your home equity to consolidate other debt? Good plan! If you own some higher interest debts (such as credit cards or car loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Paying it off Faster
Are you hoping to fatten your home equity faster, and get your mortgage paid off sooner? If this is your wish, the refinance mortgage can move you to a mortgage program with a shorter term, like a 15 year loan. The mortgage payments will likely be more than they were with a longer term mortgage, but in exchange, that you will pay considerably less interest and can build up equity more quickly. However, if you've had your current thirty-year loan for a long time and the loan balance is somewhat low, you may be able to do this without raising your mortgage payment — you may even be able to save! To help you understand your options and the many benefits of refinancing, please call us at 219-548-2255. We are here to help you reach your goals!
Curious about refinancing? Call us: 219-548-2255.