Which Refinancing Option is Right for You?
Although it may seem like it sometimes, there aren't as many loan programs as there are applicants! Contact us at (718) 639-9500 and we can match you with the refinance loan program that fits you best. In order to review your options, you'll need to list your goals for your refinance.
Reducing Your Monthly Payments
Are achieving reduced payments and a lower rate your main reasons for refinancing? If so, getting a low, fixed-rate loan could be a wise choice for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage loan, even as interest rates rise. If you are planning to live in your home for at least five more years, a fixed-rate loan may be an especially good choice for you. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Getting Out some Cash
Is "cashing out" your primary reason for refinancing? It could be you need to update your kitchen, take care of your college kid's tuition, or go on a dream vacation. So you'll want to find a loan for more than the remaining balance on your present mortgage.Then you will need If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without increasing your mortgage payment.
Consolidating Your Debt
Perhaps you'd like to pull out some of the equity (cash out) to put toward other debt. If you have a fair amount of equity, paying toward other debt with higher interest rates that your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of cash each month.
Getting a Shorter Term Loan
Do you need to build up equity quicker, and have your mortgage paid off sooner? If this is your goal, your refinance can change you to a mortgage program with a shorter term, such as a 15 year loan. You will be paying less interest and increasing your equity more quickly, even though your payments will usually be bigger than they were. But, you might be able to switch without a higher monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the remaining balance is low. You could even pay less! To help you determine your options and the numerous benefits of refinancing, please call us at (718) 639-9500. We are here to help you reach your goals!
Curious about refinancing your home? Call us: (718) 639-9500.