Which Refinancing Program is Right for You?
The number of refinance options available can be overwhelming. Contact us at 516-431-2009 and we can match you with the loan program that best fits you. surveying your choices, you'll need to think about your goals for your refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then the best option might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you might want to refinance. Even if rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you lock in that low interest rate for the life of your loan. If you are not expecting to move in the near future (about 5 years), a fixed-rate mortgage can particularly be a good option. But if you do plan to sell your home more quickly, you will need to consider an ARM with a low initial rate to get lower mortgage payments.
Getting Out some Cash
Is "cashing out" your main purpose for refinancing? Maybe you want to pay for home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. With this in mind, you will need to find a loan higher than the remaining balance on your present mortgage loan.So you will need However, if your loan interest rate is currently high and you've held it for quite a few years, you could be able to accomplish your goals without a rise in your mortgage payment.
Do you hold other debt, maybe with a higher interest rate, that you'd like to consolidate? If you hold any debt with steep interest (like credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have enough home equity.
Paying it off Faster
Are you dreaming of paying off your loan faster, while beefing up your home equity faster? In that case, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage program. Although your monthly payments will probably be more, you will be paying less interest; so your home equity will rise up faster. But, you might be able to switch without a higher monthly mortgage payment if your longer term loan was closed a while back, and the balance remaining is low. You may even make it lower! To help you figure out your options and the multiple benefits in refinancing, please call us at 516-431-2009. We are here to help you reach your goals!