Refinancing: Which Program is for You?
The huge number of refinance options available to borrowers can be overwhelming. We can guide you to choose the refinance program that will fit your financial situation the best. Call us at (718) 639-9500 to get things started. There are several questions to ask yourself as you consider the options.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a good option for you. Maybe you currently have a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even as interest rates rise, a fixed-rate mortgage loan will remain at the same, low interest rate, unlike an ARM. If you plan to stay in your home for about five more years, a fixed rate loan may be a particulary good fit for you. However, an ARM with a initial low payment may be a wiser way to reduce your monthly payments if you expect to move in the next few years.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Your house needs updating; your son has gone to University and needs tuition money; or you are planning a special vacation. In this case, you will need to look for a loan higher than the balance remaining of your current mortgage loan.Then you will want If you've had your existing mortgage for quite a while and/or have a mortgage whose interest rate is high, you might\could be able to do this without increasing your mortgage payment.
Do you want to pull out a portion of your home equity to consolidate additional debt? Good plan! If you have a fair amount of home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a lot of money every month.
Paying it off Sooner
Are you hoping to fatten up your equity faster, and get your mortgage paid off sooner? Then, you want to find out about refinancing to a short term mortgage loan - like a fifteen-year mortgage program. You will be paying less interest and growing your home equity faster, although your monthly payments will generally be higher than they were. However, if you've held your current thirty-year mortgage for a long time and the loan balance is somewhat low, you may be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please call us at (718) 639-9500. We are here for you.
Curious about refinancing your home? Call us at (718) 639-9500.