Which Refinancing Program is Best for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than borrowers! We can help you locate the refinance program that can fit your situation the best. Call us at (718) 639-9500 to get things started. What are your goals for your refinance loan? Keeping in mind the information below will help you narrow your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be your best option. Maybe you now have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate can vary. Even as interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can especially be a good option. However, if you can see yourself selling your home in the near future, an ARM with a small initial rate could be the ideal way to reduce your monthly payment.
Getting Out some Cash
Is your refinance goal primarily to "cash out" some home equity? Your home needs improvements; your daughter has gone to college and needs tuition; or you are planning a special vacation. So you want to apply for a loan higher than the balance remaining of your present mortgage.Then you want If you've had your existing mortgage loan for quite a while and/or have a mortgage loan with high interest, you might\could be able to do this without making your monthly payment higher.
Consolidating Your Debt
Do you want to pull out some of your home equity to consolidate additional debt? Great idea! If you have any higher interest debts (like credit cards or vehicle loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough equity.
Paying it off Sooner
Are you planning to fatten up your equity faster, and get your mortgage paid off more quickly? If this is your goal, your refinance loan can change you to a loan program with a short, like a 15 year loan. You will be paying less interest and increasing your home equity faster, even though your monthly payments will generally be bigger than they were. However, if you have had your current 30-year loan for a number of years and the loan balance is somewhat low, you may be do this without increasing your monthly payment — you could even be able to save! To help you figure out your options and the many benefits in refinancing, please call us at (718) 639-9500. We are here to help you reach your goals!
Want to know more about refinancing? Give us a call: (718) 639-9500.