Refinancing: Which Loan Program is for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance loan programs than applicants! Contact us at (718) 477-4405 and we'll help you qualify for the best refinance loan program for your financial situation. There are some general things to bear in mind while you review your choices.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, getting a low, fixed-rate loan may be a good choice for you. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. If you aren't planning a move in the near future (about five years), a fixed-rate mortgage can particularly be a wise loan option. However, an ARM with a low intitial payment could be a smarter way to reduce your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? Perhaps you want to make home improvements, take care of your college kid's tuition, or take your dream vacation. With this in mind, you want to look for a loan above the remaining balance on your current mortgage.So you will want If you've had your existing mortgage loan for a long time and/or have a high interest mortgage, you might\could be able to do this without making your monthly payment bigger.
Consolidating Your Debt
Do you hold other debt, maybe with a high interest rate, that you need to consolidate? If you have a fair amount of equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might help save you a chunk of cash each month.
Building up Equity More Quickly
Do you hope to build up home equity quicker, and have your mortgage paid off faster? Consider refinancing to a shorterterm loan, like a 15-year mortgage loan. Even though your mortgage payments will probably be more, you can be paying less interest; so your home equity will build up faster. Conversely, if your existing longer term loan has a small balance remaining, and was closed a while ago, you might be able to make the switch without paying more each month. To help you determine your options and the many benefits of refinancing, please contact us at (718) 477-4405. We would love to help you reach your goals!
Want to know more about refinancing? Give us a call at (718) 477-4405.