Choosing a Refinancing Program

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There are not as many loan programs as there are applicants, but it seems like it at times! Contact us at 607-547-5007 and we can help you qualify for the right loan program to fit your situation. In the interest of looking at your choices, you can consider what you want to achieve with your refinance.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan could be a wise choice for you. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in the low rate for the life of your mortgage. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can especially be a wise choice. However, an ARM with a low initial payment could be a wiser way to lower your payments if you see yourself moving within the near future. By refinancing your current mortgage, you may wind up paying more in finance charges over the life of the loan.

Refinancing to Cash Out

Are you refinancing primarily to pull out some home equity for an infusion of cash? Maybe you want to pay for home improvements, pay your child's college tuition bill, or take your dream vacation. With this in mind, you want to get a loan above the remaining balance of your present mortgage loan.Then you need However, if your mortgage rate is high now and you've had 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 want to pull out some of the home equity (cash out) to use toward other debt. If you own some higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the right amount of home equity.

Switching to a Shorter Term Loan

Are you dreaming of paying your loan off more quickly, while beefing up your equity faster? If this is your wish, your refinance loan can change you to a loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your equity faster, even though your mortgage payments will usually be bigger than you have been paying. But, you might be able to switch without a higher monthly payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please call us at 607-547-5007. We would love to help you reach your goals!