Which Refinancing Program is Right for You?
There are a huge number of refinancing programs available to borrowers. We can help you select the loan program that can fit your financial situation the best. Contact us at 516-431-2009 to begin the process. What are your goals for refinancing? Considering in mind the information below will help you narrow your choices.
Lowering Your Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. Perhaps you now have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — in which the rate of interest can vary. Even when rates come up later, unlike with your ARM, when you qualify for a fixed rate mortgage, you set that low rate for the term of your mortgage. If you plan to live in your home for about five more years, a fixed rate mortgage may be a particulary good fit for you. However, an ARM with a initial low payment may be a smarter way to lower your monthly payments if you plan on moving within the near future.
Refinancing to Cash Out
Are you hoping to cash out some of your equity in your refinance? Perhaps you need to update your kitchen, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you will need to look for a loan higher than the balance remaining on your existing mortgage.In that case, you will need You might not have an increase in your mortgage payemnt, however, if you've had your current mortgage loan for a while, and/or your interest rate is high.
Consolidating Your Debt
Do you have other debt, maybe with high interest, that you need to consolidate? If you have the equity in your home for it, paying off other high interest debt (such as home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars monthly.
Paying it off Faster
Are you dreaming of paying your loan off more quickly, while building up your equity more quickly? You should consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Even though your mortgage payments will likely be increased, you will be paying less interest; so your home equity will rise up faster. On the other hand, if your existing long-term loan has a low remaining balance, and was closed a number of years ago, you may be able to make the switch without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at 516-431-2009. We will help you reach your goals!
Want to know more about refinancing? Call us at 516-431-2009.