Which Refinancing Option is Right for You?

There are not as many loan program choices as there are applicants, but sometimes it feels like it! We can guide you to choose the refinance program that will fit your financial situation the best. Contact us at (585) 282-0960 to get things started. There are some general questions to ask yourself while you review the choices.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? Then the best option might be a low fixed-rate loan. Perhaps you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your loan, even if interest rates rise. If you are expecting to live in your home for about five more years, a loan with a fixed rate may be a particulary good choice for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.

Refinancing to Cash Out

Is your refinance goal mainly to pull out some of your home equity for an infusion of cash? Your house needs improvements; your son has been accepted to University and needs tuition money; or you are taking your family on a cruise. With this in mind, you will want to qualify for a loan above the balance remaining of your present mortgage loan.In that case, you need If you've had your current mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your mortgage payment.

Consolidating Your Debt

Do you want to cash out a portion of your equity to consolidate other debt? Good idea! If you have any higher interest debts (such as credit cards or vehicle loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the right amount of equity.

Building up Equity Faster

Are you dreaming of paying your loan off sooner, while building up your home equity quicker? If this is your goal, your refinance can change you to a mortgage loan program with a shorter term, like a 15 year loan. The monthly payments will probably be more than they were with your longer term mortgage, but in exchange, that you will pay quite a bit less interest and will build up equity quicker. But, you may be able to make the change without a higher monthly payment if your long term mortgage was closed a while back, and the balance remaining is somewhat low. You may even make it lower! To help you understand your options and the many 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.