Refinancing: Which Program is for You?

When you are overwhelmed with so many choices, it may seem as if there are even more refinance loan programs than borrowers! Call us at (585) 282-0960 and we can match you with the loan program that is ideal for you. There are some general things to bear in mind as you look at your choices.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan might be a wise option for you. Maybe you are currently in a loan with a high, fixed interest rate, or a loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you plan to live in your home for about five more years, a fixed rate mortgage may be an especially good choice for you. But if you do plan to move more quickly, you should consider an ARM with a low initial rate to get lower monthly payments.

Cashing Out

Are you refinancing primarily to "cash out" some home equity? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. With this in mind, you want to find a loan for more than the remaining balance on your existing mortgage.In that case, you'll want to qualify for a loan for a higher number than the balance remaining on your existing mortgage. You may not increase your mortgage payemnt, however, if you've had your current loan for a number of years, and/or your interest rate is high.

Debt Consolidation

Maybe you want to pull out some of the 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 (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars in your monthly budget.

Switching to a Shorter Term Loan

Are you hoping to fatten up your equity faster, and get your mortgage paid off more quickly? Consider refinancing with a short-term loan, often a 15-year mortgage loan. Although your mortgage payment amount will probably be increased, you will save on interest; so your equity will build up faster. On the other hand, if your existing long-term mortgage loan has a low balance remaining, and was closed a while ago, you might be able to make the move without paying more each month. To help you understand your options and the many benefits of refinancing, please contact us at (585) 282-0960. We are here for you.

Curious about refinancing your home? Call us: (585) 282-0960.