Which Refinancing Loan Program is Right for You?
When you are overwhelmed with all the options, it may seem like there are even more refinance loan programs than applicants! Contact us at (718) 477-4405 and we can work with you to qualify you for the right refinance loan for your situation. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage, even if interest rates rise. This can be especially a good idea if you don't plan to sell your home within the next 5 years or so. However, an ARM with a low intitial payment could be a smarter way to reduce your payments if you expect to move in the near future.
Getting Out some Cash
Are you planning to cash out some of your home equity with your refinance? Maybe you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. So you'll need to qualify for a loan above the remaining balance of your present mortgage loan.So you want You may not have an increase in your mortgage payemnt, though, if you've had your existing mortgage for a while, and/or your loan interest rate is high.
Maybe you want to pull out some of the equity in your home (cash out) to put toward other debt. If you have the equity in your home to make it work, paying off other high interest debt (like credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars each month.
Paying it off Sooner
Are you hoping to fatten up your equity faster, and get your mortgage paid off sooner? Then, you'll want to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. You will be paying less interest and increasing your home equity faster, although your payments will likely be bigger than they were. On the other hand, if your existing longer term loan has a small remaining balance, and was closed a while ago, you could be able to make the change without paying more each month. To help you figure out your options and the numerous benefits of refinancing, please contact us at (718) 477-4405. We will help you reach your goals!
Curious about refinancing? Give us a call: (718) 477-4405.