Refinancing: Which Program is for You?
The number of refinance options available to borrowers is truly breathtaking. Contact us at (718) 477-4405 and we can help you qualify for the perfect refinance loan for your financial situation. There are some general questions to ask yourself as you review your choices.
Making Your Payments Lower
Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right loan program for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if rates come up later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low rate for the life of your mortgage. This kind of loan is particularly a wise idea if you don't plan to move within the next five years or so. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower mortgage payments.
Refinancing to Cash Out
Are you refinancing primarily to pull out some of your equity for an infusion of cash? Your home needs renovating; your daughter has gone to University and needs tuition; or you are planning a special vacation. In this case, you need to get a loan higher than the balance remaining of your current mortgage loan.So you'll want However, if your loan interest rate is currently high and you've had it for quite a few years, you could be able to achieve your goals without a rise in your mortgage payment.
Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Switching to a Shorter Term Loan
Are you hoping to fatten your equity faster, and pay your mortgage loan off sooner? If this is your plan, the refinance mortgage can change you to a mortgage loan program with a short, for example: a 15 year loan. Your mortgage payments will probably be more than with your long-term mortgage, but in exchange, you will pay quite a bit less interest and can build up equity more quickly. But, you might be able to make the change without a bigger monthly payment if your long 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 contact us at (718) 477-4405. We are here to help you reach your goals!
Want to know more about refinancing your home? Call us at (718) 477-4405.