Choosing a Refinancing Loan
There are a huge number of refinancing programs available to borrowers. Call us at 516-431-2009 and we'll help you qualify for the perfect loan program to fit your situation. What are your reasons for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, getting a low, fixed-rate loan may be a wise choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even if rates get higher later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set the low interest rate for the term of your mortgage. This kind of loan can be especially a wise choice if you don't think you'll be moving within the next five years or so. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate to get reduced mortgage payments.
Are you hoping to cash out some of your equity in your refinance? Perhaps you're planning a special vacation; you have to pay college tuition for your child; or you are updating your kitchen. So you will want to qualify for a loan higher than the balance remaining on your present mortgage loan.So you will want to need to find a loan program for a higher amount than the balance remaining on your present mortgage loan. You might not have an increase in your monthly payemnt, however, if you have had your existing mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Maybe you'd like to pull out some of the equity (cash out) to put toward other debt. If you have the equity in your home to make it work, taking care of other high interest debt (like home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Building up Equity Faster
Are you hoping to fatten up your equity faster, and get your mortgage paid off sooner? Then, you need to look into refinancing to a short term mortgage - for example, a fifteen-year mortgage program. Your monthly payments will probably be higher than with the longer term loan, but the pay-off is: that you will pay substantially less interest and will build up equity quicker. Conversely, if your current long-term loan has a small balance remaining, and was closed a while ago, you might be able to make the change without paying more each month. To help you figure out your options and the many benefits of refinancing, please call us at 516-431-2009. We are here for you.