Selecting a Refinancing Option
Although it may seem like it sometimes, there aren't as many loan options as there are borrowers! We can help you select the loan program that will fit your financial situation the best. Contact us at 516-431-2009 to begin the process. What are your goals for your refinance loan? Keeping in mind the information below will help you begin your decision process.
Reducing Your Monthly Payments
Are getting better payments and an improved rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage loan with a high, fixed interest rate, or a loan with which the interest rate varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This kind of loan is particularly a wise idea if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a initial low payment could be a wiser way to reduce your monthly payments if you expect to move in the next few years.
Refinancing to Cash Out
Is "cashing out" your primary reason for your refinance? Maybe you're planning a special vacation; you need to pay tuition for your college-bound child; or you are planning some home improvements. In this case, you need to get a loan above the balance remaining of your present mortgage loan.In this case, you will want to qualify for a loan for a bigger number than the balance remaining on your present mortgage. However, if your mortgage rate is currently high and you've held it for quite a few years, you could be able to reach your goals without an increase in your mortgage payment.
Do you want to cash out some equity to consolidate other debt? Good plan! If you have the home equity for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.
Building up Equity Faster
Are you wanting to fatten your home equity faster, and pay off your mortgage more quickly? If this is your plan, your refinance can switch you to a loan program with a shorter term, for example: a 15 year loan. Although your monthly payment amount will likely be increased, you can be paying less interest; so your equity amount will build up faster. However, if you have held your current 30 year mortgage for a number of years and the remaining balance is somewhat low, you might be do this without increasing your monthly payment — it's even possible to save! To help you determine your options and the many benefits in refinancing, please call us at 516-431-2009. We can help you reach your goals!
Want to know more about refinancing? Give us a call: 516-431-2009.