Which Refinancing Option is Best for You?
The number of refinance options available to borrowers can be overwhelming. We can help you find the refinance program that will fit your financial situation the best. Contact us at (585) 282-0960 to begin the process. There are several things to keep in mind while you review your choices.
Making Your Payments Lower
Are getting better mortgage payments and an improved rate your main refinance goals? Then a low, fixed rate loan may be the right choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even when rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low interest rate for the life of your mortgage. This kind of loan can be especially a wise choice if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to reduce your mortgage payments if you expect to move in the next few years.
Getting Out some Cash
Are you hoping to cash out some of your equity with your refinance? It could be you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. So you will need to find a loan higher than the remaining balance on your existing mortgage loan.In this case, you will want to find a loan for a bigger number than the remaining balance on your existing mortgage. If you've had your current mortgage for a long time and/or have a loan with a high interest rate, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Maybe you want to cash out some of the equity (cash out) to use toward other debt. If you have the equity in your home for it, taking care of other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars each month.
Switching to a Shorter Term Loan
Are you dreaming of paying off your loan more quickly, while beefing up your equity quicker? Then, you'll want to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. You will be paying less interest and increasing your equity faster, even though your mortgage payments will generally be bigger than you have been paying. On the other hand, if your existing long-term mortgage has a low balance remaining, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you determine your options and the numerous 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? Call us: (585) 282-0960.