Refinancing: Which Program is for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than applicants! Contact us at (585) 282-0960 and we will help you qualify for the perfect refinance loan program to fit your financial needs. There are some general things to keep in mind while you review the options.
Lowering Your Payments
Are achieving better mortgage payments and an improved rate your main refinance goals? Then the best option may be a low fixed-rate loan. Maybe you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set the low rate for the term of your loan. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate in order to achieve lower payments.
Is your refinance goal mainly to "cash out" some home equity? Maybe you're planning a special vacation; you have to pay college tuition for your child; or you are planning some home improvements. Then you'll want to apply for a loan above the balance remaining on your current mortgage.In this case, you want to qualify for a loan program for a higher number than the balance remaining on your existing mortgage loan. If you've had your current mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you have other debt, maybe with a higher interest rate, that you need to consolidate? If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you may be able to save hundreds of dollars per month.
Building up Equity Faster
Are you wanting to fatten up your equity faster, and get your mortgage paid off sooner? Then, you need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. You will be paying less interest and growing your home equity more quickly, even though your monthly payments will usually be higher than they were. But, you may be able to switch without a higher monthly mortgage payment if your long term mortgage loan was closed a while ago, and the remaining balance is small. You could even make it lower! To help you understand your options and the many benefits in refinancing, please contact us at (585) 282-0960. We will help you reach your goals!
Curious about refinancing your home? Give us a call at (585) 282-0960.