Choosing a Refinancing Option
The number of refinance options available can be overwhelming. Contact us at 516-431-2009 and we'll work with you to qualify you for the right refinance program for your situation. There are several things to have in mind as you consider the choices.
Reducing Your Monthly Payments
Are getting reduced monthly payments and a better rate your main refinance goals? If so, a good option could be a low fixed-rate loan. Perhaps you currently hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even if interest rates rise, a fixed-rate mortgage loan must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about five years), a fixed-rate mortgage can particularly be a good option. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? It could be you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. With this in mind, you want to get a loan above the balance remaining on your existing mortgage loan.Then you will need If you've had your existing mortgage loan for quite a while and/or have a mortgage loan with high interest, you may be able to do this without making your mortgage payment higher.
Do you want to pull out some of your home equity to consolidate additional debt? Good plan! If you have the home equity to make it work, taking care of other high interest debt (for example: car loans, credit cards, student loans, or home equity loans) means you may be able to save several hundred dollars monthly.
Switching to a Shorter Term Loan
Are you planning to fatten your home equity faster, and get your mortgage paid off sooner? In that case, you'll need to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and growing your equity more quickly, although your payments will usually be bigger than they were. However, if you have held your existing thirty year mortgage loan for a number of years and the remaining balance is somewhat low, you might be able to do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please call us at 516-431-2009. We will help you reach your goals!
Want to know more about refinancing your home? Give us a call: 516-431-2009.