Refinancing: Which Program is for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than borrowers! Call us at (718) 477-4405 and we can match you with the refinance program that best fits you. In order to review your choices, you'll need to list what you want to achieve with the refinance.
Lowering Your Payments
Are getting better mortgage payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Perhaps you now have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — where the interest rate can vary. Different that the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage loan, even if interest rates rise. If you are expecting to stay in your home for about five more years, a fixed-rate loan may be an especially good choice for you. However, an ARM with a initial low payment may be a wiser way to lower your mortgage payments if you see yourself moving in the next few years.
Getting Out some Cash
Are you wanting to cash out some of your equity in your refinance? Maybe you want to update your kitchen, pay your child's college tuition bill, or take a cruise. In this case, you will need to get a loan for more than the remaining balance of your existing mortgage.So you You'll be looking for a loan for a bigger amount than the current balance with your present home loan in this case. However, if your mortgage rate is currently high and you've had it for quite a few years, you may be able to reach your goals without an increase in your mortgage payment.
Consolidating Your Debt
Do you want to cash out some home equity to consolidate additional debt? Good idea! If you have the equity in your home to make it work, taking care of other debt with higher interest than the rate on your mortgage (such as car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars per month.
Paying it off Faster
Are you planning to fatten your home equity faster, and pay your mortgage off more quickly? You should consider refinancing to a shorterterm loan, often a 15-year mortgage. Even though your mortgage payments will usually be more, you can be paying less interest; so your equity amount will build up faster. Conversely, if your existing longer term loan has a low balance remaining, and was closed a while ago, you may even be able to make the change without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at (718) 477-4405. We are here for you.
Curious about refinancing your home? Give us a call: (718) 477-4405.