Which Refinancing Option is Best for You?
The huge number of refinance options available is truly breathtaking. Call us at (585) 282-0960 and we can match you with the refinance loan program that best fits you. In order to review your choices, you need to consider what you want to achieve with the refinance.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Perhaps you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — with which the interest rate can vary. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of your mortgage loan, even if interest rates rise. If you are not planning on moving in the near future (about five years), a fixed-rate mortgage can particularly be a wise loan option. However, if you do see yourself moving in the near future, an ARM mortgage with a small initial rate may be the best way to lower your monthly payment.
Is your refinance goal mainly to "cash out" some home equity? Maybe you're going on a much needed vacation; you have to pay college tuition for your child; or you are planning some home improvements. So you'll need to qualify for a loan above the balance remaining of your present mortgage.In this case, you will want to qualify for a loan program for a bigger number than the remaining balance on your present mortgage loan. If you've had your current mortgage loan for quite a while and/or have a mortgage loan with high interest, you might\could be able to do this without increasing your monthly payment.
Do you have other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have a fair amount of equity, taking care of other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) may help save you a lot of cash every month.
Switching to a Shorter Term Loan
Do you need to build up home equity quicker, and have your mortgage paid off sooner? In that case, you want to find out about refinancing to a short term mortgage - for example, a fifteen-year loan. Your mortgage payments will probably be more than with your longer term mortgage, but the pay-off is: that you will pay quite a bit less interest and will build up equity quicker. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term loan was closed a while back, and the remaining balance is low enough. You could even make it lower! To help you figure out your options and the numerous benefits in refinancing, please contact us at (585) 282-0960. We are here for you.
Want to know more about refinancing? Give us a call: (585) 282-0960.