Refinancing: Which Program is for You?
When you are overwhelmed with so many choices, it may seem like there are even more loan programs than applicants! We can guide you to find the loan program that will fit your situation the best. Contact us at (585) 282-0960 to get things started. There are several things to have in mind as you review your options.
Reducing Your Monthly Payments
Are achieving lower monthly payments and an improved rate your main reasons for refinancing? If so, your best option might be a low fixed-rate loan. Perhaps you are currently in a loan with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even if rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in that low interest rate for the term of your mortgage. If you are not expecting to move in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. However, if you can see yourself moving in the near future, an ARM mortgage with a low initial rate might be the best way to reduce your monthly payments.
Getting Out some Cash
Is your refinance goal mainly to "cash out" some home equity? Maybe you want to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. With this in mind, you'll need to apply for a loan for more than the balance remaining on your present mortgage loan.In this case, you will You will need to get a loan for more than the current balance with your existing mortgage loan in this case. You might not have an increase in your monthly payemnt, however, if you've had your existing mortgage loan for a number of years, and/or your loan interest rate is high.
Perhaps you want to cash out some equity in your home (cash out) to put toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars a month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan sooner, while beefing up your home equity faster? Then, you need to find out about refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and growing your home equity more quickly, even though your mortgage payments will usually be bigger than they were. On the other hand, if your current longer term loan has a small balance remaining, and was closed a while ago, you might be able to make the change without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at (585) 282-0960. We are here for you.
Want to know more about refinancing your home? Call us: (585) 282-0960.