Refinancing: Which Loan Program is for You?

The number of refinance options available is truly breathtaking. We can help you find the loan program that will fit your financial situation the best. Contact us at (585) 282-0960 to begin the process. In the interest of looking at your options, you can consider what you want to achieve with your refinance.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal loan program for you. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even as interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise loan option. On the other hand, if you do see yourself moving in the near future, an adjustable rate mortgage with a low initial rate may be the best way to lower your monthly payment.

Refinancing to Cash Out

Is your refinance goal primarily to pull out some of your home equity for an infusion of cash? Perhaps you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you want to look for a loan for more than the balance remaining on your existing mortgage loan.In this case, you will want You may not increase your mortgage payemnt, though, if you've had your existing loan for a long time, and/or your loan interest rate is high.

Consolidating Your Debt

Do you have other debt, maybe with high interest, that you want to consolidate? If you hold some debt with steep interest (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have enough equity.

Getting a Shorter Term Loan

Are you wanting to fatten your equity faster, and get your mortgage paid off more quickly? Consider refinancing with a shorterterm loan, such as a 15-year mortgage. Your mortgage payments will likely be more than they were with the long-term mortgage loan, but the pay-off is: you will pay quite a bit less interest and can build up equity more quickly. But, you may be able to make the change without a higher monthly mortgage payment if your longer term mortgage loan was closed a while back, and the balance remaining is low enough. You may even make it lower! To help you determine your options and the multiple benefits of refinancing, please call us at (585) 282-0960. We can help you reach your goals!

Want to know more about refinancing your home? Give us a call at (585) 282-0960.