Which Refinancing Loan Program is Best for You?

Even though it may seem like it at times, there aren't as many loan options as there are borrowers! Contact us at (585) 282-0960 and we can match you with the refinance program that fits you best. There are some general things to keep in mind as you consider your choices.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even as interest rates rise, a fixed rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you plan to stay in your home for about five more years, a fixed rate loan may be an especially good option for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get reduced payments.

Cashing Out

Is "cashing out" your main reason for refinancing? Your home needs renovating; your son has been accepted to college and needs tuition; or you have a special family vacation planned. So you want to find a loan above the balance remaining on your present mortgage.With this goal, you'll need If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.

Consolidating Debt

Do you want to cash out some equity to consolidate other debt? Yes you can! If you have the home equity for it, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you can possible save several hundred dollars in your budget each month.

Building up Equity Faster

Are you planning to fatten your home equity faster, and pay off your mortgage more quickly? In that case, you'll want to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. You will be paying less interest and increasing your home equity faster, even though your mortgage payments will usually be bigger than they were. But, you might be able to switch without a higher monthly payment if your long term mortgage was closed a while ago, and the balance remaining is somewhat low. You could even make it lower! To help you figure out your options and the numerous benefits of refinancing, please contact us at (585) 282-0960. We will help you reach your goals!

Curious about refinancing? Call us at (585) 282-0960.