Selecting a Refinancing Option
There are an enormous number of refinancing programs available to borrowers. Call us at (718) 477-4405 and we'll work with you to qualify you for the right loan program for your financial needs. In the interest of looking at your choices, you can consider your goals for your refinance.
Making Your Payments Lower
Are getting better payments and an improved rate your main reasons for refinancing? In that case, the best choice may be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the life of the mortgage, even when interest rates rise. If you aren't expecting to move in the near future (about 5 years), a fixed-rate mortgage can especially be a wise choice. However, an ARM with a initial low payment could be a wiser way to lower your mortgage payments if you expect to move in the near future.
Is "cashing out" your primary reason for your refinance? Maybe you need to update your kitchen, take care of your college kid's tuition, or take your dream vacation. Then you'll need to get a loan for more than the remaining balance on your current mortgage loan.With this goal, you will You'll be looking for a loan for a bigger amount than the balance remaining with your present mortgage in this case. If you've had your current mortgage loan for a number of years and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment bigger.
Do you have other debt, perhaps with a high interest rate, that you need to consolidate? If you have a fair amount of equity, paying toward other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) could help save you a chunk of money each month.
Paying it off Sooner
Do you want to build up equity more quickly, and pay off your mortgage faster? In that case, you want to find out about refinancing to a short term mortgage - like a fifteen-year mortgage program. You will be paying less interest and growing your equity more quickly, although your payments will usually be higher than you have been paying. However, if you have had your existing thirty year loan for a long time and the loan balance is rather low, you may be able to do this without increasing your mortgage payment — you may even be able to save! To help you determine your options and the multiple benefits in refinancing, please contact us at (718) 477-4405. We are here for you.
Want to know more about refinancing? Give us a call: (718) 477-4405.