Choosing a Refinancing Loan

There are not as many loan program choices as there are applicants, but it feels like it sometimes! Call us at (585) 282-0960 and we will help you qualify for the right refinance loan for your financial needs. What do you hope to achieve with your refinance loan? Keeping in mind the information below will help you begin your decision process.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you expect to live in your home for at least five more years, a loan with a fixed rate may be a particulary good fit for you. On the other hand, if you can see yourself selling your home before too long, an adjustable rate mortgage with a small initial rate might be the ideal way to lower your monthly payment.

Getting Out some Cash

Is your refinance goal primarily to "cash out" some home equity? Your home needs improvements; your son has gone to college and needs tuition money; or you are taking your family on a cruise. In this case, you'll want to find a loan for more than the balance remaining on your existing mortgage.In this case, you'll want However, if your loan interest rate is high now and you have held it for quite a few years, you could be able to reach your goals without an increase in your mortgage payment.

Consolidating Your Debt

Perhaps you'd like to cash out some home equity (cash out) to use toward other debt. If you have the home equity to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as credit cards, home equity loans, or car loans) means you can possible save hundreds of dollars monthly.

Getting a Shorter Term Loan

Are you dreaming of paying off your loan more quickly, while beefing up your home equity quicker? In that case, you need to find out about refinancing to a short term mortgage - like a fifteen-year mortgage program. Even though your monthly payment amount will probably be more, you can save on interest; so your equity will build up faster. Conversely, if your existing long-term loan has a low remaining balance, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you understand your options and the many benefits of refinancing, please contact us at (585) 282-0960. We would love to help you reach your goals!

Curious about refinancing your home? Call us at (585) 282-0960.