Refinancing: Which Option is for You?

When you are overwhelmed with all the options, it may seem as if there are even more loan programs than borrowers! Call us at (585) 282-0960 and we can help you qualify for the best refinance loan program to fit your financial needs. surveying your options, you can determine your goals for the refinance.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the right loan program for you. Maybe you now hold a fixed-rate mortgage with a higher rate, or perhaps you have an ARM — adjustable rate mortgage — in which the rate of interest varies. Even if rates get higher later, unlike with your ARM, when you close a mortgage with a fixed rate, you set the low interest rate for the term of your loan. If you are not expecting to move in the near future (about 5 years), a fixed-rate mortgage can especially be a good loan option. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get reduced monthly payments.

Refinancing to Cash Out

Are you planning to cash out some of your home equity with your refinance? Maybe you want to pay for home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you'll need to apply for a loan above the balance remaining on your current mortgage loan.Then you'll want to qualify for a loan for a bigger amount than the balance remaining on your current mortgage. You might not increase your monthly payemnt, however, if you have had your current mortgage for a while, and/or your interest rate is high.

Consolidating Debt

Do you have other debt, perhaps with higher interest, that you need to consolidate? If you have enough home equity, paying off other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash every month.

Paying it off Faster

Are you dreaming of paying your loan off sooner, while beefing up your equity faster? If this is your plan, your refinance mortgage can move you to a loan program with a shorter term, for example: a 15 year loan. Your mortgage payments will probably be more than with a longer term mortgage, but in exchange, you will pay quite a bit less interest and can build up equity quicker. But, you may be able to switch without a higher monthly payment if your long term mortgage was closed a while ago, and the remaining balance is somewhat low. You may even pay less! To help you determine your options and the multiple benefits in refinancing, please contact us at (585) 282-0960. We are here for you.

Want to know more about refinancing your home? Call us: (585) 282-0960.