Which Refinancing Option is Best for You?

When you are overwhelmed with so many options, it may seem as if there are even more refinance loan programs than applicants! Call us at (718) 477-4405 and we'll help you qualify for the perfect loan program for your needs. In order to review your options, you will need to list your goals for your refinance.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best loan program for you. Maybe you currently have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — in which the interest rate varies. Even if rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you set the low interest rate for the term of your mortgage. If you are not planning a move in the near future (about five years), a fixed-rate mortgage can especially be a great loan option. However, an ARM with a low intitial payment may be a better way to lower your monthly payments if you expect to move in the near future.

Getting Out some Cash

Is your refinance goal mainly to "cash out" some home equity? Maybe you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are updating your kitchen. So you'll want to get a loan above the balance remaining on your current mortgage.So you You'll be looking for a loan for more than the remaining balance with your present mortgage loan in this case. However, if your mortgage rate is high now and you've held it for quite a few years, you could be able to achieve your goals without a rise in your mortgage payment.

Debt Consolidation

Do you hold other debt, perhaps with high interest, that you need to consolidate? If you have enough equity, taking care of other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might help save you a lot of money every month.

Switching to a Shorter Term Loan

Are you hoping to fatten your equity faster, and pay your mortgage off sooner? If this is your hope, the refinance can move you to a mortgage program with a short, for example: a 15 year loan. You will be paying less interest and increasing your home equity more quickly, even though your payments will usually be more than you have been paying. However, if you've held your existing 30 year mortgage for a long time and the loan balance is relatively low, you might be able to do this without increasing your mortgage payment — it's even possible to save! To help you determine your options and the multiple benefits in refinancing, please call us at (718) 477-4405. We are here to help you reach your goals!

Want to know more about refinancing your home? Call us at (718) 477-4405.

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