Choosing a Refinancing Option
There are not as many loan programs as there are borrowers, but at times it feels like it! We can help you select the loan program that can fit your situation the best. Call us at 516-431-2009 to begin the process. There are some general things to keep in mind while you look at the choices.
Reducing Your Monthly Payments
Are achieving reduced payments and an improved rate your main reasons for refinancing? In that case, applying for a low, fixed-rate loan could be a good choice for you. Perhaps you are now in a mortgage with a high, fixed interest rate, or a mortgage loan with which the interest rate varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the loan, even if interest rates rise. A fixed-rate mortgage can be particularly a good choice if you don't plan to sell your home within the next 5 years or so. On the other hand, if you can see yourself selling your home in the near future, an ARM with a small initial rate could be the ideal way to lower your monthly payments.
Getting Out some Cash
Are you wanting to cash out some of your home equity with your refinance? Maybe you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. So you'll need to get a loan higher than the remaining balance of your current mortgage.Then you want If you've had your current mortgage loan for a long time and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your monthly payment.
Consolidating Your Debt
Maybe you'd like to cash out some equity (cash out) to use toward other debt. If you own any higher interest debts (like credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the right amount of home equity.
Getting a Shorter Term Loan
Are you wanting to fatten up your equity faster, and pay off your mortgage more quickly? If this is your hope, the refinance mortgage can change you to a mortgage loan program with a shorter term, such as a 15 year loan. Your monthly payments will probably be higher than with the longer term loan, but the pay-off is: you will pay quite a bit less interest and will build up equity more quickly. On the other hand, if your current longer term mortgage has a small remaining balance, and was closed a while ago, you may be able to make the change without paying more each month. To help you figure out your options and the numerous benefits in refinancing, please contact us at 516-431-2009. We are here to help you reach your goals!