Which Refinancing Option is Right for You?
There are not as many loan program choices as there are applicants, but sometimes it feels like it! We can help you select the refinance loan program that will fit your needs the best. Contact us at (718) 639-9500 to begin the process. There are some general questions to ask yourself while you review your options.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a good option could be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low rate for the life of your loan. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can particularly be a wise option. However, an ARM with a initial low payment may be a smarter way to lower your mortgage payments if you see yourself moving in the next few years.
Are you refinancing mainly to pull out some of your home equity for an infusion of cash? Perhaps you want to pay for home improvements, pay your child's college tuition bill, or take your family on a dream vacation. Then you need to get a loan above the balance remaining on your present mortgage loan.With this goal, you'll want If you've had your current mortgage loan for a long time and/or have a high interest mortgage, you may be able to do this without increasing your monthly payment.
Do you want to cash out a portion of your equity to consolidate additional debt? Great idea! If you have some debt with steep interest (like credit cards or vehicle loans), you may be able to take care of that debt with a lower rate loan through your refinance, if you have the home equity built up to make it work.
Building up Equity More Quickly
Are you wanting to fatten your home equity faster, and pay your mortgage off more quickly? In that case, you need to look into refinancing to a short term mortgage - like a fifteen-year loan. You will be paying less interest and increasing your equity faster, even though your payments will generally be more than you were paying. However, if you've had your existing 30-year mortgage loan for a long time and the loan balance is relatively low, you could be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the many benefits of refinancing, please contact us at (718) 639-9500. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at (718) 639-9500.