Choosing a Refinancing Program

When you are overwhelmed with all the choices, it may seem like there are even more refinance loan programs than borrowers! Contact us at (585) 282-0960 and we'll help you qualify for the right refinance program to fit your needs. There are some general questions to ask yourself while you review the options.

Lowering Your Payments

Are achieving reduced monthly payments and an improved rate your main refinance goals? Then your best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of your mortgage, even as interest rates rise. This is especially a good option if you aren't planning a move within the next five years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.

Getting Out some Cash

Are you hoping to cash out some of your equity in your refinance? Perhaps you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you will need to qualify for a loan for more than the remaining balance on your present mortgage loan.In that case, you You will need to get a loan for a higher amount than the balance remaining of your current mortgage loan in that case. However, if your mortgage rate is high now and you've held it for quite a few years, you may be able to reach your goals without making your mortgage payments higher.

Consolidating Your Debt

Maybe you want to pull out some equity in your home (cash out) to put toward other debt. If you have built up some equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a chunk of cash each month.

Building up Equity Faster

Are you wanting to fatten your equity faster, and pay off your mortgage loan sooner? Then, you want to look into refinancing to a short term mortgage - such as a fifteen-year mortgage program. Even though your monthly payments will probably be more, you will be paying less interest; so your equity will build up faster. But, you may be able to make the change without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is low. You could even pay less! To help you figure out your options and the multiple benefits in refinancing, please call us at (585) 282-0960. We are here to help you reach your goals!

Curious about refinancing? Give us a call: (585) 282-0960.