Refinancing: Which Option is for You?
When you are overwhelmed with all the choices, it may seem like there are even more refinance programs than borrowers! We can guide you to select the refinance program that will fit your situation the best. Call us at (718) 639-9500 to begin the process. In the interest of looking at your options, you will need to list what you want to achieve with the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a good choice may be a low fixed-rate loan. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of your loan, even as interest rates rise. A fixed-rate mortgage is especially a good choice if you don't think you'll be moving within the next 5 years or so. However, an ARM with a low intitial payment may be a wiser way to lower your mortgage payments if you see yourself moving in the next few years.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? Maybe you need to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you will want to get a loan for more than the balance remaining on your current mortgage loan.In this case, you'll need You might not increase your mortgage payemnt, though, if you've had your existing mortgage loan for a while, and/or your loan interest rate is high.
Consolidating Your Debt
Do you hold other debt, perhaps with a high interest rate, that you'd like to consolidate? If you have some higher interest debts (such as credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Are you wanting to fatten up your home equity faster, and pay off your mortgage loan sooner? Consider refinancing to a short-term loan, often a 15-year mortgage loan. Your payments will likely be more than with your longer term mortgage, but in exchange, you will pay quite a bit less interest and will build up equity quicker. But, you may be able to make the change without much increase in your monthly payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You could even make it lower! To help you determine your options and the numerous benefits in refinancing, please contact us at (718) 639-9500. We will help you reach your goals!
Want to know more about refinancing? Call us: (718) 639-9500.