Refinancing: Which Option is for You?

There are a huge number of refinancing options available to borrowers. Contact 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'll need to think about what you want to achieve with your refinance.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a wise option for you. Maybe you now have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the interest rate can vary. Even when rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in that low rate for the term of your mortgage. If you are planning to live in your home for at least five more years, a fixed-rate loan may be an especially good option for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.

Cashing Out

Are you hoping to cash out some of your equity with your refinance? Your house needs improvements; your daughter has gone to University and needs tuition; or you are planning a special vacation. So you'll need to apply for a loan above the remaining balance of your present mortgage.In that case, you'll You will want to find a loan for more than the remaining balance of your current mortgage loan in this case. If you've had your current mortgage for quite a while and/or have a mortgage loan whose interest rate is high, you may be able to do this without making your monthly payment higher.

Debt Consolidation

Perhaps you want to cash out some of the equity (cash out) to use toward other debt. If you have built up some home equity, paying toward other debt with higher interest that your home loan (credit cards or home equity loans, for example) might be able to save you a lot of cash every month.

Paying it off Sooner

Do you want to build up home equity more quickly, and have your mortgage paid off more quickly? You should consider refinancing to a shorterterm loan, such as a 15-year mortgage loan. Although your monthly payments will usually be more, you can be paying less interest; so your equity amount will build up faster. But, you could be able to make the change without a bigger monthly mortgage payment if your longer term mortgage loan was closed a while back, and the balance remaining is somewhat low. You may even make it lower! To help you determine your options and the numerous benefits in refinancing, please contact us at (718) 477-4405. We are here for you.

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

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