Which Refinancing Loan Program is Right for You?
Although it may seem like it at times, there are not as many refinance loan options as there are applicants! Call us at (718) 639-9500 and we can match you with the refinance loan program that best fits you. In the interest of looking at your choices, you'll need to consider what you want to achieve with the refinance.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. Maybe you now have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — with which the rate of interest varies. Even as interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you are planning to stay in your home for about five more years, a fixed rate mortgage may be an especially good option for you. On the other hand, if you do see yourself selling your home before too long, an adjustable rate mortgage with a low initial rate might be the best way to bring down your monthly payment.
Refinancing to Cash Out
Is your refinance goal mainly to pull out some equity for an infusion of cash? Maybe you need to make home improvements, take care of your college kid's tuition, or go on a special family vacation. Then you will want to find a loan above the remaining balance on your current mortgage.With this goal, you will want to need to find a loan for a bigger number than the remaining balance on your current mortgage loan. If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.
Do you have other debt, maybe with high interest, that you want to consolidate? If you have enough equity, paying toward other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) could be able to save you a lot of cash every month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while building up your home equity faster? Consider refinancing with a short-term loan, often a 15-year mortgage loan. Although your monthly payment amount will usually be increased, you can save on interest; so your equity amount will rise up faster. However, if you've held your current thirty year mortgage for a long time and the remaining balance is relatively low, you might be do this without raising your mortgage payment — you may even be able to save! To help you determine your options and the numerous benefits of refinancing, please call us at (718) 639-9500. We are here for you.
Want to know more about refinancing your home? Give us a call: (718) 639-9500.