Refinancing: Which Option is for You?
When you are overwhelmed with all the choices, it may seem as if there are even more refinance loan programs than borrowers! Contact us at (718) 477-4405 and we can help you qualify for the right refinance program for your needs. In order to review your options, you'll need to determine what you want to achieve with your refinance.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the ideal option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even as interest rates rise, a fixed rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you plan to stay in your home for about five more years, a fixed-rate loan may be a particulary good fit for you. On the other hand, if you do see yourself moving before too long, an ARM with a low initial rate may be the best way to bring down your monthly payments.
Are you refinancing primarily to "cash out" some home equity? Your home needs updating; your son has gone to college and needs tuition; or you have a special family vacation planned. Then you'll need to apply for a loan for more than the remaining balance on your existing mortgage loan.So you You'll need to apply for a loan for more than the balance remaining with your present mortgage loan in this case. However, if your interest rate is currently high and you've had it for a long time, you could be able to accomplish your goals without making your mortgage payments rise.
Consolidating Your Debt
Perhaps you hope to pull out some equity in your home (cash out) to put toward other debt. If you have built up some home equity, paying toward other debt with higher interest that your home loan (credit cards or home equity loans, for example) may help save you a lot of cash each month.
Building up Equity Faster
Are you hoping to fatten your home equity faster, and get your mortgage paid off sooner? Then, you'll want to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage loan. Your monthly payments will likely be more than they were with your long-term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. However, if you have held your current thirty-year mortgage for a long time and the loan balance is relatively low, you might be able to do this without raising your monthly mortgage payment — it's even possible to save! To help you understand your options and the numerous benefits of refinancing, please contact us at (718) 477-4405. We are here for you.
Curious about refinancing your home? Call us: (718) 477-4405.