Which Refinancing Option is Right for You?
There are an enormous number of refinancing options available to borrowers. We can guide you to select the refinance program that will fit your situation the best. Call us at 516-431-2009 to begin the process. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? Then your best option may be a low fixed-rate loan. Maybe you are currently in a mortgage with a high, fixed interest rate, or a mortgage in 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 life of your mortgage loan, even as interest rates rise. A fixed-rate mortgage is particularly a wise choice if you don't expect to sell your home within the next five years or so. On the other hand, if you do see yourself selling your home in the near future, an ARM with a low initial rate could be the best way to reduce your monthly payments.
Getting Out some Cash
Is your refinance goal primarily to pull out some of your equity for an infusion of cash? It could be you're planning a special vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. Then you need to find a loan higher than the balance remaining on your present mortgage.So you need You might not increase your mortgage payemnt, though, if you've had your existing mortgage for a long time, and/or your loan interest rate is high.
Do you want to pull out a portion of your equity to consolidate other debt? Great idea! If you have a fair amount of equity, paying toward other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could help save you a lot of cash every month.
Paying it off Faster
Are you dreaming of paying off your loan more quickly, while building up your equity faster? Then, you'll want to look into refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. The mortgage payments will probably be more than they were with your long-term mortgage loan, but the pay-off is: that you will pay considerably less interest and will build up equity more quickly. Conversely, if your existing long-term loan has a low remaining balance, and was closed a number of years ago, you may even be able to make the move without paying more each month. To help you figure out your options and the many benefits of refinancing, please contact us at 516-431-2009. We are here for you.