Refinancing: Which Loan Program is for You?

When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than applicants! Call us at (585) 282-0960 and we'll help you qualify for the perfect loan program for your situation. What are your goals for your refinance loan? Keeping in mind the following will help you begin your decision process.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan could be a good option for you. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even if interest rates rise. If you are not expecting to move in the near future (about five years), a fixed-rate mortgage can particularly be a great choice. However, an ARM with a low intitial payment could be a smarter way to lower your monthly payments if you expect to move in the near future.

Getting Out some Cash

Are you hoping to cash out some of your equity in your refinance? Maybe you want to make home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. In this case, you'll need to apply for a loan above the balance remaining of your current mortgage.Then you need If you've had your existing mortgage for a number of years and/or have a mortgage with a high interest rate, you might\could be able to do this without making your monthly payment higher.

Debt Consolidation

Maybe you want to pull out some of the equity (cash out) to use toward other debt. If you own some debt with steep interest (such as credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have enough home equity.

Building up Equity Faster

Do you want to build up home equity quicker, and pay off your mortgage sooner? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage. Although your monthly payment amount will usually be increased, you will be paying less interest; so your home equity will build up faster. On the other hand, if your current longer term mortgage loan has a low balance remaining, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you determine your options and the multiple benefits in refinancing, please call us at (585) 282-0960. We are here for you.

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