Refinancing: Which Loan Program is for You?

When you are overwhelmed with so many options, it may seem like there are even more refinance programs than borrowers! Call us at (718) 477-4405 and we can help you qualify for the right loan program to fit your needs. There are some general questions to ask yourself while you review your choices.

Lowering Your Payments

Are getting better mortgage payments and a lower rate your main refinance goals? If so, applying for a low, fixed-rate loan could be a good option for you. Maybe you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a good choice. However, if you do see yourself moving before too long, an adjustable rate mortgage with a low initial rate could be the best way to lower your monthly payment.

Cashing Out

Is "cashing out" your main reason for your refinance? Your house needs renovating; your son has gone to University and needs tuition money; or you are taking your family on a cruise. In this case, you will want to look for a loan higher than the balance remaining on your current mortgage.In that case, you'll You will be looking for a loan for more than the remaining balance with your current home loan in that case. You may not increase your mortgage payemnt, however, if you've had your existing loan for a number of years, and/or your interest rate is high.

Consolidating Your Debt

Do you want to pull out a portion of your equity to consolidate other debt? Good idea! 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 right amount of equity.

Building up Equity More Quickly

Are you dreaming of paying your loan off sooner, while building up your equity more quickly? If this is your hope, your refinance mortgage can change you to a mortgage loan program with a short, like a 15 year loan. You will be paying less interest and growing your home equity faster, even though your payments will generally be bigger than you were paying. But, you might be able to switch without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while ago, and the balance remaining is low. You may even make it lower! To help you figure out your options and the numerous benefits of refinancing, please call us at (718) 477-4405. We are here to help you reach your goals!

Curious about refinancing your home? Give us a call: (718) 477-4405.

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