Refinancing: Which Option is for You?
There aren't as many loan programs as there are borrowers, but at times it feels like it! We can help you find the refinance program that will fit your situation the best. Call us at (718) 639-9500 to begin the process. There are some general things to bear in mind as you consider your options.
Reducing Your Monthly Payments
Are achieving lower monthly payments and an improved rate your main refinance goals? In that case, a low, fixed rate loan may be the ideal option for you. Perhaps you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — with which the interest rate varies. Even if interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you are not planning on moving in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower monthly payments.
Refinancing to Cash Out
Is your refinance goal mainly to "cash out" some home equity? Perhaps you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. Then you want to apply for a loan above the remaining balance on your existing mortgage loan.With this goal, you need You may not have an increase in your mortgage payemnt, however, if you have had your current mortgage for a number of years, and/or your interest rate is high.
Do you have other debt, perhaps with higher interest, that you need to consolidate? If you hold some debt with steep interest (like credit cards or car loans), you may be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of home equity.
Building up Equity More Quickly
Are you hoping to fatten your home equity faster, and pay off your mortgage more quickly? If this is your hope, the refinance mortgage can switch you to a mortgage loan program with a shorter term, such as a 15 year loan. Your payments will likely be higher than with the longer term mortgage, but in exchange, you will pay substantially less interest and can build up equity quicker. But, you might be able to make the change without a bigger monthly payment if your long term loan was closed a while back, and the balance remaining is small. You may even pay less! To help you understand your options and the multiple benefits of refinancing, please call us at (718) 639-9500. We are here to help you reach your goals!
Want to know more about refinancing your home? Give us a call: (718) 639-9500.