Selecting a Refinancing Program

There are not as many refinance loan options as there are applicants, but at times it feels like it! We can guide you to locate the refinance program that will fit your needs the best. Contact us at (585) 282-0960 to get started. What are your goals for your refinance loan? Considering in mind the following will help you narrow your choices.

Reducing Your Monthly Payments

Are achieving better payments and an improved rate your main reasons for refinancing? If so, applying for a low, fixed-rate loan could be a wise option for you. Perhaps you currently hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Unlike the ARM, your low fixed rate mortgage stays at a certain low rate for the term of the loan, even as interest rates rise. This kind of loan is especially a wise idea if you don't expect to move within the next 5 years or so. However, an ARM with a initial low payment could be a smarter way to reduce your monthly payments if you expect to move in the next few years.

Getting Out some Cash

Is your refinance goal mainly to "cash out" some home equity? Your home needs renovating; your daughter has been accepted to University and needs tuition; or you are taking your family on a cruise. In this case, you want to get a loan for more than the balance remaining on your current mortgage.So you'll need If you've had your existing mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.

Debt Consolidation

Perhaps you hope to pull out a portion of the equity in your home (cash out) to use toward other debt. If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can possible save several hundred dollars monthly.

Building up Equity More Quickly

Are you hoping to fatten your equity faster, and pay off your mortgage loan more quickly? You should consider refinancing with a shorterterm loan, often a 15-year mortgage loan. You will be paying less interest and increasing your home equity more quickly, even though your monthly payments will usually be higher than you were paying. Conversely, if your current long-term mortgage loan has a low remaining balance, and was closed a while ago, you might be able to make the change without paying more each month. To help you figure out your options and the many benefits in refinancing, please contact us at (585) 282-0960. We are here to help you reach your goals!

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