| -> | | | | the interest only period of your loan will be ending |
| Interest only loans can be very tempting to | | | | soon or if you plan on staying in your house for |
| borrowers who are unable to afford a home with | | | | awhile longer, refinancing will also be of benefit. |
| traditional means. They are also popular among those | | | | Why Refinancing Will Help You Save |
| who intend to invest their savings or those who plan | | | | Currently, interest rates on interest only loans in |
| to make more money in the future. Unfortunately, | | | | Indiana average 5.72 percent. While this is a fair rate, |
| interest only loans aren't right for everyone. If you, | | | | it's not much lower than the rate you would pay on a |
| like many other people in Indiana, took out one of | | | | regular adjustable rate mortgage. In fact, it may |
| these loans and find that they aren't all that they are | | | | even be higher depending on the type of ARM you |
| said to be, you may want to consider refinancing. | | | | get. Current rates on a 5/1 ARM in Illinois average |
| Who Should Refinance Their Interest Only Loan | | | | 5.56 percent, while a 3/1 ARM averages a rate of |
| Many people who take out an interest only mortgage | | | | 5.42 percent. By refinancing to a regular ARM, your |
| loan expect to be making more money within a few | | | | monthly payments will still be comparable to what |
| years time. Unfortunately, expectations don't always | | | | you pay now. The bonus is that you will be paying on |
| match up with reality. If your earnings aren't | | | | the principal and building equity at the same time. |
| increasing, refinancing now may be a good idea. If | | | | |