Refinancing: Which Option is for You?
There are an enormous number of refinancing options available to borrowers. Contact us at 516-431-2009 and we will match you with the refinance loan program that is best for you. What do you hope to achieve with refinancing? Keeping in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good choice could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage loan, even when interest rates rise. If you plan to stay in your home for about five more years, a fixed-rate loan may be a particulary good choice for you. However, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a small initial rate might be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your equity in your refinance? Your home needs improvements; your son has been accepted to college and needs tuition; or you are taking your family on a cruise. With this in mind, you will need to get a loan above the balance remaining on your present mortgage loan.So you want to qualify for a loan program for a bigger amount than the remaining balance on your current mortgage loan. If you've had your existing mortgage for quite a while and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.
Do you want to pull out a portion of your equity to consolidate other debt? Great plan! If you have enough home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of cash each month.
Paying it off Sooner
Are you hoping to fatten your home equity faster, and get your mortgage paid off sooner? Then, you want to find out about refinancing to a short term mortgage - such as a fifteen-year mortgage program. The monthly payments will probably be higher than with the long-term loan, but the pay-off is: that you will pay considerably less interest and will build up equity quicker. However, if you have held your current thirty year loan for a long time and the loan balance is somewhat low, you may be able to do this without increasing your monthly payment — you could even be able to save! To help you understand your options and the multiple benefits in refinancing, please call us at 516-431-2009. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us: 516-431-2009.