Refinancing: Which Option is for You?

There aren't as many refinance loan programs as there are applicants, but it feels like it sometimes! We can help you find the refinance loan program that will fit your needs the best. Call us at (585) 282-0960 to get things started. In order to review your options, you can 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? Then your best option may be a low fixed-rate loan. Perhaps you currently have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Even when interest rates rise, a fixed rate mortgage loan must stay 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 loan may be a particulary good choice for you. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced payments.

Refinancing to Cash Out

Are you hoping to cash out some of your home equity with your refinance? Your house needs new carpet; your daughter has been accepted to University and needs tuition money; or you are taking your family on a cruise. In this case, you'll want to find a loan above the balance remaining on your current mortgage.With this goal, you need However, if your interest rate is currently high and you've held it for a long time, you could be able to reach your goals without making your mortgage payments rise.

Consolidating Debt

Do you have other debt, maybe with a high interest rate, that you want to consolidate? If you have a fair amount of home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a lot of cash each month.

Paying it off Faster

Do you hope to build up equity quicker, and pay off your mortgage sooner? Then, you'll want to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. You will be paying less interest and growing your home equity faster, although your payments will usually be more than they were. Conversely, if your existing long-term mortgage has a small balance remaining, and was closed a while ago, you may be able to make the move without paying more each month. To help you understand your options and the many benefits of refinancing, please call us at (585) 282-0960. We are here for you.

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