Which Refinancing Option is Best for You?
When you are overwhelmed with so many options, it may seem as if there are even more loan programs than applicants! Call us at (718) 639-9500 and we'll help you qualify for the perfect refinance loan program for your needs. What are your reasons for refinancing? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the best option for you. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even when interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you aren't planning on moving in the near future (about five years), a fixed-rate mortgage can especially be a good option. However, an ARM with a low intitial payment could be a smarter way to lower your monthly payments if you expect to move within the near future.
Getting Out some Cash
Is "cashing out" your main reason for your refinance? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. So you'll want to get a loan higher than the remaining balance on your existing mortgage loan.Then you will You'll be looking for a loan for more than the balance remaining on your present mortgage loan in this case. You might not have an increase in your mortgage payemnt, however, if you've had your current loan for a while, and/or your loan interest rate is high.
Perhaps you'd like to cash out some equity (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other high interest debt (for example: home equity loans, student loans, or credit cards) means you can possible save several hundred dollars in your monthly budget.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your home equity quicker? Then, you want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. Although your mortgage payment amount will usually be increased, you will be paying less interest; so your equity amount will rise up faster. On the other hand, if your current long-term mortgage loan has a small remaining balance, and was closed a while ago, you may even be able to make the switch without paying more each month. To help you understand your options and the numerous benefits of refinancing, please contact us at (718) 639-9500. We will help you reach your goals!
Curious about refinancing? Give us a call: (718) 639-9500.