Refinancing: Which Loan Program is for You?

The huge number of refinance options available to borrowers is truly breathtaking. Call us at (585) 282-0960 and we can match you with the refinance loan program that fits you best. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you narrow your choices.

Making Your Payments Lower

Are getting better monthly payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be your best option. Perhaps you now hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate varies. Even when interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you are not expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a great loan option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.

Refinancing to Cash Out

Are you planning to cash out some of your home equity with your refinance? Perhaps you need to make home improvements, take care of your college kid's tuition, or go on a dream vacation. In this case, you'll need to find a loan higher than the balance remaining of your current mortgage loan.Then you'll want to need to get a loan program for a bigger amount than the remaining balance on your current mortgage. If you've had your current mortgage for a long time and/or have a high interest mortgage, you may be able to do this without making your mortgage payment higher.

Consolidating Debt

Do you hold other debt, perhaps with high interest, that you want to consolidate? If you have built up some home equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) might be able to save you a lot of money every month.

Building up Equity More Quickly

Do you want to build up equity quicker, and have your mortgage paid off more quickly? If this is your wish, the refinance can change you to a mortgage loan program with a short, such as a 15 year loan. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will generally be bigger than they were. Conversely, if your existing long-term mortgage has a low balance remaining, 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 figure out your options and the many benefits of refinancing, please call us at (585) 282-0960. We will help you reach your goals!

Curious about refinancing your home? Give us a call: (585) 282-0960.