Refinancing: Which Program is for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance programs than applicants! We can guide you to select the refinance loan program that can fit your needs the best. Call us at 516-431-2009 to begin the process. There are several things to bear in mind while you look at the choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, applying for a low, fixed-rate loan might be a good option for you. Maybe you now hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — in which the interest rate varies. Even when rates come up later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you set the low interest rate for the life of your mortgage. If you plan to live in your home for about five more years, a fixed rate mortgage may be an especially good choice for you. But if you do plan to move more quickly, you will need to consider an ARM with a low initial rate to get lower mortgage payments.
Is "cashing out" your main purpose for your refinance? Perhaps you want to update your kitchen, pay your child's college tuition bill, or take your dream vacation. In this case, you want to get a loan above the remaining balance of your existing mortgage loan.Then you want If you've had your current mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.
Do you want to pull out some of your equity to consolidate additional debt? Good plan! If you hold any higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a loan with a lower rate with your refinance, if you have the equity built up to make it work.
Building up Equity Faster
Are you planning to fatten your equity faster, and pay your mortgage loan off more quickly? Consider refinancing to a shorterterm loan, like a 15-year mortgage loan. You will be paying less interest and growing your equity faster, even though your payments will usually be more than they were. But, you could be able to switch without much increase in your monthly payment if your longer term mortgage was closed a while back, and the remaining balance is low. You may even make it lower! To help you understand your options and the numerous benefits in refinancing, please contact us at 516-431-2009. We are here to help you reach your goals!