Selecting a Refinancing Loan
There are an enormous number of refinancing options available to borrowers. We can guide you to find the refinance loan program that will fit your needs the best. Contact us at (718) 477-4405 to begin the process. surveying your choices, you can consider what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan might be a good option for you. Maybe you currently have a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even if interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. This kind of loan is especially a wise idea if you don't think you'll be moving within the next 5 years or so. However, if you do see yourself moving within several years, an ARM with a low initial rate could be the ideal way to bring down your monthly payments.
Is "cashing out" your main reason for refinancing? Perhaps you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. Then you will need to qualify for a loan above the remaining balance on your current mortgage loan.Then you will want to need to get a loan for a bigger number than the balance remaining on your present mortgage. You may not increase your mortgage payemnt, however, if you've had your current mortgage loan for a while, and/or your interest rate is high.
Do you hold other debt, maybe with high interest, that you need to consolidate? If you have some debt with higher 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 right amount of home equity.
Getting a Shorter Term Loan
Are you dreaming of paying off your loan faster, while building up your home equity more quickly? If this is your goal, the refinance can move you to a mortgage program with a short, for example: a 15 year loan. The monthly payments will likely be more than with your long-term mortgage, but in exchange, that you will pay considerably less interest and will build up equity more quickly. However, if you have held your existing thirty-year mortgage for a long time and the loan balance is rather low, you could be do this without increasing your monthly mortgage payment — you could even be able to save! To help you understand your options and the multiple benefits of refinancing, please call us at (718) 477-4405. We will help you reach your goals!
Curious about refinancing your home? Give us a call: (718) 477-4405.