Refinancing: Which Loan Program is for You?

Even though it seems like it at times, there aren't as many refinance loan choices as there are applicants! We can help you locate the refinance program that can fit your needs the best. Contact us at (585) 282-0960 to get things started. There are several things to keep in mind while you consider your options.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right loan program for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even when interest rates rise. If you plan to stay in your home for about five more years, a fixed rate loan may be an especially good choice for you. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower payments.

Refinancing to Cash Out

Is "cashing out" your primary purpose for your refinance? Perhaps you're dreaming of a cruise; you have to pay college tuition for your child; or you are planning some home improvements. With this in mind, you need to qualify for a loan for more than the balance remaining on your current mortgage.In this case, you will need You may not have an increase in your mortgage payemnt, however, if you've had your current loan for a long time, and/or your loan interest rate is high.

Consolidating Debt

Do you want to pull out some equity to consolidate other debt? Good plan! If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars in your budget each month.

Switching to a Shorter Term Loan

Are you dreaming of paying your loan off faster, while beefing up your home equity quicker? Consider refinancing to a shorterterm loan, often a 15-year mortgage. Although your mortgage payments will usually be more, you will be paying less interest; so your equity will rise up faster. Conversely, if your current longer term loan has a small remaining balance, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you understand your options and the multiple benefits in refinancing, please contact us at (585) 282-0960. We are here for you.

Want to know more about refinancing your home? Call us: (585) 282-0960.