Choosing a Refinancing Option
There are a huge number of refinancing programs available to borrowers. Call us at (718) 477-4405 and we can match you with the refinance loan program that fits you best. In order to review your options, you can consider your goals for the refinance.
Reducing Your Monthly Payments
Are getting better payments and a better rate your main reasons for refinancing? If so, your best choice might be a low fixed-rate loan. Maybe you currently 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 will stay at a certain low rate for the life of the loan, even as interest rates rise. If you aren't expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can particularly be a great option. However, an ARM with a low intitial payment may be a smarter way to reduce your payments if you plan on moving within the near future.
Refinancing to Cash Out
Are you hoping to cash out some of your equity with your refinance? Perhaps you want to make home improvements, pay your child's college tuition bill, or take your dream vacation. Then you need to find a loan above the balance remaining on your existing mortgage loan.In that case, you'll want to qualify for a loan for a higher number than the balance remaining on your present mortgage. However, if your mortgage rate is currently high and you have held it for a long time, you could be able to reach your goals without making your mortgage payments rise.
Consolidating Your Debt
Do you hold other debt, perhaps with a higher interest rate, that you want to consolidate? If you own some debt with high interest (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate through your refinance, if you have the equity built up to make it work.
Paying it off Faster
Do you plan to build up home equity quicker, and have your mortgage paid off sooner? In that case, you want to find out about refinancing to a short term mortgage - like a fifteen-year loan. Even though your monthly payment amount will usually be increased, you will save on interest; so your equity amount will rise up faster. However, if you have had your existing thirty year mortgage for a long time and the remaining balance is rather low, you might be do this without raising your monthly payment — you might even be able to save! To help you figure out your options and the many benefits in refinancing, please call us at (718) 477-4405. We would love to help you reach your goals!
Curious about refinancing your home? Call us: (718) 477-4405.