Choosing a Refinancing Program
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When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than applicants! We can help you select the refinance program that can fit your situation the best. Call us at (260) 338-2561 to get things started. What do you hope to achieve with refinancing? Considering in mind the following will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you now hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even when interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can especially be a great loan option. However, if you do see yourself selling your home within several years, an ARM with a low initial rate might be the best way to lower your monthly payments.
Getting Out some Cash
Is your refinance goal primarily to "cash out" some home equity? Maybe you're dreaming of a cruise; you need to pay college tuition for your child; or you are updating your kitchen. Then you will want to look for a loan higher than the balance remaining on your existing mortgage loan.So you will need However, if your interest rate is high now and you have held it for quite a few years, you could be able to achieve your goals without making your monthly payments bigger.
Consolidating Your Debt
Maybe you want to pull out some of the equity in your home (cash out) to use toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (for example: credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars each month.
Paying it off Sooner
Do you plan to build up home equity quicker, and pay off your mortgage more quickly? In that case, you need to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. The mortgage payments will probably be more than with a longer term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity quicker. On the other hand, if your existing long-term mortgage loan has a low remaining balance, and was closed a number of years ago, you could be able to make the switch without paying more each month. To help you determine your options and the multiple benefits in refinancing, please contact us at (260) 338-2561. We are here for you.
Curious about refinancing? Call us: (260) 338-2561.