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Refinancing: Which Option is for You?

The number of refinance options available is truly breathtaking. Call us at 516-431-2009 and we can match you with the refinance program that fits you best. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.

Reducing Your Monthly Payments

Is your refinance primarily to lower your rate and monthly payments? If so, a good option might be a low fixed-rate loan. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan with which the interest rate varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage loan will stay at the same, low interest rate, unlike an ARM. If you expect to live in your home for about five more years, a fixed rate mortgage may be a particulary good fit for you. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.

Getting Out some Cash

Is "cashing out" your main purpose for refinancing? Your house needs improvements; your daughter has gone to University and needs tuition; or you are planning a special vacation. With this in mind, you'll want to get a loan higher than the balance remaining on your present mortgage loan.So you will You'll need to get a loan for a bigger amount than the balance remaining on your existing home loan in this case. You may not increase your mortgage payemnt, however, if you have had your existing loan for a while, and/or your interest rate is high.

Consolidating Your Debt

Maybe you want to pull out a portion of the equity in your home (cash out) to use toward other debt. If you have enough home equity, paying toward other debt with higher interest that your mortgage loan (credit cards or home equity loans, for example) might help save you a lot of cash each month.

Getting a Shorter Term Loan

Are you wanting to fatten up your equity faster, and pay your mortgage loan off more quickly? You should consider refinancing to a shorterterm loan, like a 15-year mortgage. Although your monthly payment amount will likely be increased, you can save on interest; so your equity will build up faster. But, you might be able to make the change without a bigger monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is somewhat low. You may even pay less! To help you determine your options and the many benefits of refinancing, please contact us at 516-431-2009. We are here for you.

Want to know more about refinancing your home? Give us a call: 516-431-2009.

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