Which Refinancing Option is Right for You?
The number of refinance options available to borrowers is truly breathtaking. Contact us at (718) 477-4405 and we can match you with the refinance program that best fits you. In the interest of looking at your choices, you should determine what you want to achieve with your refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan may be a good option for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you expect to live in your home for about five more years, a fixed-rate loan may be an especially good option for you. However, an ARM with a low intitial payment could be a wiser way to reduce your payments if you expect to move in the next few years.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Perhaps you want to make home improvements, take care of your college kid's tuition, or take your dream vacation. In this case, you want to get a loan above the remaining balance of your present mortgage loan.Then you will want You might not increase your monthly payemnt, however, if you have had your existing mortgage for a long time, and/or your interest rate is high.
Do you have other debt, perhaps with a high interest rate, that you need to consolidate? If you hold some higher interest debts (like credit cards or vehicle loans), you might be able to take care of that debt with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Paying it off Faster
Are you hoping to fatten up your equity faster, and pay off your mortgage loan sooner? You should consider refinancing to a short-term loan, like a 15-year mortgage loan. The monthly payments will likely be higher than they were with a longer term mortgage loan, but the pay-off is: you will pay considerably less interest and will build up equity quicker. But, you could be able to make the change without a higher monthly payment if your longer term loan was closed a while ago, and the balance remaining is somewhat low. You may even pay less! To help you figure out your options and the numerous benefits in refinancing, please call us at (718) 477-4405. We are here for you.
Want to know more about refinancing? Call us: (718) 477-4405.