Refinancing: Which Program is for You?
There aren't as many loan program choices as there are applicants, but it feels like it at times! Call us at 516-431-2009 and we will help you qualify for the right refinance loan for your financial needs. In the interest of looking at your options, you can list what you want to achieve with your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, the best choice could be a low fixed-rate loan. Perhaps you currently have a fixed-rate mortgage with a higher rate, or maybe you have an ARM — adjustable rate mortgage — in which the interest rate varies. Even if interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. A fixed-rate mortgage is particularly a wise choice if you don't plan to move within the next five years or so. However, an ARM with a initial low payment may be a smarter way to reduce your payments if you expect to move within the near future.
Refinancing to Cash Out
Is "cashing out" your primary reason for refinancing? Your home needs improvements; your daughter has gone to University and needs tuition; or you have a special family vacation planned. Then you will need to find a loan above the remaining balance on your present mortgage loan.Then you need If you've had your current mortgage for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.
Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you have the home equity for it, taking care of other high interest debt (such as home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.
Getting a Shorter Term Loan
Are you hoping to fatten your equity faster, and pay your mortgage off sooner? In that case, you'll need to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage loan. Even though your monthly payment amount will usually be increased, you will save on interest; so your equity will rise up faster. But, you might be able to switch without much increase in your monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is low enough. You could even pay less! To help you figure out your options and the numerous benefits in refinancing, please contact us at 516-431-2009. We are here for you.