Advantages and Disadvantages of Refinancing Ithaca NY

Refinancing your mortgage is when you get a new mortgage loan out and use the money from the new loan to pay off your old mortgage loan. In some cases refinancing home loan options are a good idea, and in some cases, refinancing your home loan is not such a good idea. Sometimes, refinancing your mortgage may cost you more money in the long run.


1 . Local Companies

Citizens Bank - Ithaca Tops
607-277-8500
710 South Meadow Street
Ithaca, NY
Alliance Bank Na Community Branch Locations Groton Avenue Office
(607)753-3391
1125 State Route 222
Cortland, NY
Senka Agency
(607)594-3335
Po Box 129
Odessa, NY
Southern Tier Morigage CO
(607)266-8800
2359 North Triphammer Road
ITHACA, NY
Cfcu Community Credit Union
(607) 257-8500
1030 Craft Rd
Ithaca, NY
Citizens Bank - N. Triphammer/Tops
607-257-3322
2300 N. Triphammer Rd
Ithaca, NY
M And T Bank Banking Departments M And T Mortgage Corporation
(607)756-4187
1091 State Route 222
Cortland, NY
David J Dempsey Agency
(315)364-8230
983 State Route 34b
King Ferry, NY
Tompkins County Trust Company
(607)594-3338
100 West Main
ODESSA, NY
Community Bank NA Interlaken
(607)532-8333
8395 Main
INTERLAKEN, NY

2 . Advantages of Refinancing

When the Federal Reserve is cutting interest rates to try to stimulate the economy, you may be wondering if refinancing your mortgage is a good idea. Refinancing home loan options may help you to save money if you are able to get a lower interest rate. You may be able to switch from an adjustable rate mortgage to a fixed rate mortgage with a similar interest rate.

There are advantages in refinancing your home loan if you are planning on staying where you are, and you are currently unable to make your mortgage payments because your adjustable rate mortgage reset itself at a higher interest rate. In some cases, you may pay more over the course of your loan, but this can balance out with the lower payments. Overall, you will want to make sure that refinancing mortgage options will give you lower payments over the course of your loan, or that the savings with the lower payments enable you to save enough money to make up for the cost of refinancing your mortgage loan.

Shopping around for a low fixed rate mortgage can give you low set payments rather than ones that adjust every few months or years. You may be able to find a "no points, no closing costs" mortgage while you are shopping around for a new mortgage. In this case, you will want to thoroughly check the terms of the new mortgage loan to verify that there are no hidden fees or other issues that can cause problems with your refinance.

3 . Disadvantages of Refinancing

In some cases, the disadvantages of refinancing your home loan outweigh the advantages of refinancing. If you are not planning on staying in your home, then refinancing your mortgage can be a very bad idea. As a general rule, the first few months' payments are directed toward the cost of refinancing your home loan. This can mean that you lose money in refinancing your mortgage.

Another time that refinancing your mortgage would be a disadvantage is if you extend the term of the loan. If your mortgage was originally 15 years and you extended it to 30 years with the refinance, you will pay more over the course of the loan. This may seem like an obvious statement, but it's easy to get blinded by the lower payment without looking at the payments over the course of the loan. Unfortunately, this is what got a lot of people in trouble with the sub-prime mortgage mess that the media is focusing on right now.

In some cases, though you may not be able to afford your current payments, refinancing your mortgage is not an option. This is especially true if the value of your house has gone down, but the amount you owe hasn't gone down proportionately.

4 . When Refinancing is Cheaper

It may be difficult to decide when refinancing your mortgage is a good idea. If your mortgage is less than the current appraised value of your home, you may find refinancing your mortgage to be a good idea when the interest rates are going down.

You may refinance for the same amount of time, but a lower interest rate. This can reduce your monthly payments, which would give you more money short term. You may refinance your loan for a shorter term and a shorter interest rate. In both cases, you will save your interest charges minus any refinancing fees. You will need to use a financing calculator online to sort out if it is worth it for you to refinance to the lower interest rate.

When refinancing your home loan, you may decide to refinance the current balance of your loan for the same amount of time as your original loan yet at a lower interest rate. Though this will reduce your mortgage payments, if you are disciplined, you can save yourself more in the long run by paying the same amount as you were paying on your old mortgage.
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