Here are 5 good reasons why you would want to refinance your Indiana home now. While not not everyone will qualify due to declining values, if you do qualify, you will want to consider these reasons.
1. Get a lower mortgage rate. While the rates are off their all-time lows, there are still a lot of benefits to getting a lower rate.
Look at it this way… If gasoline prices average $3 a gallon and you were able to buy it for $2 a gallon, you would be very happy! If the price increased to $2.50, would you stop buying because it’s not as good of a deal? No way!
Same with mortgages. If you are going to “buy” your home (live in it) for years, why not take advantage of locking in a lower cost???
2. You have an adjustable rate loan. While you may have a low rate right now, you lack one very important thing… STABILITY.
If you have a current rate of 4%, it may seem counterintuitive to refinance into a fixed rate loan of 5% or so. However, in a couple years if fixed rates are in the 7% range and your ARM is in the area of 8 to 9%, you will be wishing you payed a little closer attention now.
3. It’s not just about rate! Although we tend to focus on that (too much), it is really about the amount of month that is leaving your pocket each month to pay your debts.
Think about freeing up some cash to provide a little cushion in case of emergency. How about paying off the credit cards quicker, that car loan earlier, saving for the kid’s college, or even your retirement.
Better yet, what if you could reduce your required payment, but still send the same size check to your mortgage company? By utilizing a little-to-no out-of-pocket refinance, you could pay off your home years sooner and save tens of thousands of dollars in the process.
I’ll post the other reasons soon. Until then, if you have any questions or just want to see if a refi can benefit you, feel free to contact me at 219-695-0369 or fill out this short form for your Mortgage Fitness Check-up.
Scott
Your Indiana mortgage expert specializing in FHA, VA, and USDA Rural Development loans.
Need cash to buy or refinance a home and make repairs or improvements? Ask about our FHA 203(k) Rehab loans.
