Selecting a Refinancing Loan

Even though it seems like it at times, there aren't as many loan options as there are borrowers! Contact us at (585) 282-0960 and we'll help you qualify for the perfect refinance loan program for your situation. There are several questions to ask yourself while you look at your choices.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a good option for you. Perhaps you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a wise choice. However, an ARM with a low intitial payment could be a wiser way to lower your monthly payments if you expect to move within the near future.

Refinancing to Cash Out

Are you planning to cash out some of your home equity in your refinance? Maybe you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you need to find a loan for more than the remaining balance on your current mortgage.In this case, you'll want to find a loan for a bigger number than the remaining balance on your present mortgage. You may not have an increase in your monthly payemnt, however, if you've had your existing mortgage for a long time, and/or your loan interest rate is high.

Debt Consolidation

Do you want to pull out some of your equity to consolidate other debt? Yes you can! If you have the home equity for it, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you can save possibly several hundred dollars in your monthly budget.

Paying it off Faster

Are you planning to fatten up your home equity faster, and pay your mortgage loan off more quickly? If this is your plan, the refinance mortgage can switch you to a mortgage program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your mortgage payments will generally be higher than they were. Conversely, if your current long-term loan has a low balance remaining, and was closed a while ago, you may be able to make the move without paying more each month. To help you figure out your options and the many benefits of refinancing, please call us at (585) 282-0960. We would love to help you reach your goals!

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