Selecting a Refinancing Program
There are not as many refinance loan programs as there are borrowers, but it feels like it at times! We can help you locate the refinance loan program that can fit your situation the best. Contact us at (718) 639-9500 to get started. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Is your refinance primarily to lower your rate and monthly payments? Then the best option may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates come up later, unlike with your ARM, when you get a fixed-rate mortgage, you set the low interest rate for the term of your loan. If you expect to live in your home for at least five more years, a fixed-rate loan may be a particulary good fit for you. On the other hand, if you can see yourself selling your home before too long, an ARM mortgage with a small initial rate could be the ideal way to bring down your monthly payments.
Is "cashing out" your main reason for refinancing? It could be you need to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. So you need to find a loan higher than the remaining balance of your present mortgage.With this goal, you'll You'll be looking for a loan for a higher amount than the current balance with your current mortgage in this case. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Do you want to pull out some of your equity to consolidate additional debt? Great plan! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can possible save several hundred dollars in your monthly budget.
Paying it off Faster
Do you want to build up home equity more quickly, and pay off your mortgage faster? In that case, you need to look into refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. You will be paying less interest and increasing your equity faster, even though your monthly payments will generally be bigger than they were. But, you might be able to switch without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is somewhat low. You could even pay less! To help you figure out your options and the many benefits of refinancing, please contact us at (718) 639-9500. We are here for you.
Curious about refinancing? Call us at (718) 639-9500.