Refinancing your mortgage

Are you considering refinancing your mortgage – in other words, taking out a new mortgage to pay off your existing mortgage? There are some very good reasons to refinance a mortgage.

Among the most popular reasons for refinancing your mortgage is to reduce your monthly payment. If rates are lower than when you originally financed your mortgage, or if you choose an adjustable-rate mortgage that offers a lower interest rate, you can reduce your monthly payment (assuming you don’t shorten the term of your loan or increase your balance).

You probably won’t have to scrape together closing costs, since you can usually roll the closing costs into your loan amount. There’s no down payment. And you can expect a refund from your existing escrow account to fund your new escrow account.

If you have significant equity in your house, you could get a cash-out refinance and walk away with a new loan and some excess funds for home improvements, college costs or other expenses.

If you have an adjustable-rate mortgage and worry about rising rates, you can refinance to a fixed rate, protecting you against rising rates and providing peace of mind.

You can refinance to help reduce excess debts, such as credit card debt. By doing so, you may be able to enjoy tax benefits, since mortgage interest is generally tax deductible. If you’re considering this, you should talk to your tax advisor.

You may reduce the term of your loan by refinancing. Though this may result in a higher payment, you could save thousands of dollars in interest over the life of your loan.

Another way to obtain additional funds (an alternative to refinancing) is to take out a second mortgage or home equity line or loan. Home equity credit is designed for individuals who have accumulated equity in their home. You can choose from either a revolving line of credit or a fixed-rate loan, depending on the how and why you need to borrow. With both a home equity line and loan, there are no closing costs or points. And, interest may be tax deductible (consult your tax advisor for details).

If you want the flexibility to borrow and repay funds over and over again, like you do with a credit card, a home equity line is ideal. With a home equity line, rates are variable and are based on The Wall Street Journal Prime Rate.

If you want to borrow a lump sum and to have peace of mind from the predictability of fixed monthly payments that do not change over the life of your loan, you should consider a home equity loan.

 

 

 

Kevin Petho (NMLS ID#  680418)  is a Loan Officer for
RBS Citizens, N.A. Citizens Bank is a brand name of RBS Citizens, N.A. (NMLS ID# 433960) and  Citizens Bank of Pennsylvania (NMLS ID# 522615).  

Direct Phone Line: (716) 444-3800

For more information call Colleen Kulikowski

(716) 650-0051

 

Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.

Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.

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All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.
 
 
 
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2014 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.
 
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All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.
 
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2014 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.
 
 
 


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About Kevin Petho Key Bank (716) 444-3800

Kevin Petho (NMLS ID# _680418_) is a Senior Loan Officer for Key Bank. Direct Phone Line (716) 444-3800.

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