Which Refinancing Loan Program is Best for You?
The huge number of refinance options available to borrowers can be overwhelming. We can help you select the loan program that will fit your situation the best. Call us at (585) 282-0960 to get things started. In order to review your options, you can think about what you want to achieve with your refinance.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage, even if interest rates rise. This is especially a good idea if you don't think you will move within the next 5 years or so. However, an ARM with a low intitial payment could be a better way to reduce your payments if you plan on moving in the near future.
Is "cashing out" your primary reason for refinancing? Your house needs new carpet; your daughter has been accepted to college and needs tuition; or you have a special family vacation planned. So you want to look for a loan above the remaining balance on your present mortgage loan.So you want to find a loan program for a higher amount than the balance remaining on your current mortgage loan. You may not have an increase in your monthly payemnt, though, if you've had your current mortgage for a while, and/or your interest rate is high.
Do you want to pull out some home equity to consolidate other debt? Excellent idea! If you own any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.
Paying it off Faster
Are you dreaming of paying your loan off sooner, while beefing up your equity more quickly? If this is your hope, the refinance loan can switch you to a mortgage loan program with a shorter term, such as a 15 year loan. Although your mortgage payments will likely be more, you will save on interest; so your equity amount will build up faster. On the other hand, if your existing long-term mortgage has a low balance remaining, and was closed a while ago, you could be able to make the move without paying more each month. To help you determine your options and the multiple benefits of refinancing, please call us at (585) 282-0960. We are here for you.
Want to know more about refinancing? Give us a call at (585) 282-0960.