Selecting a Refinancing Loan
The huge number of refinance options available to borrowers can be overwhelming. Contact us at 516-431-2009 and we'll work with you to qualify you for the right refinance loan program for your situation. In the interest of looking at your choices, you can determine your goals for your refinance.
Making Your Payments Lower
Are getting better payments and an improved rate your main refinance goals? If so, getting a low, fixed-rate loan might be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even if rates rise later, unlike with your ARM, when you qualify for a fixed rate mortgage, you lock in that low rate for the life of your loan. If you are not planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise option. But if you do expect to sell your home more quickly, you will want to consider an ARM with a low initial rate in order to achieve reduced mortgage payments.
Getting Out some Cash
Are you refinancing mainly to "cash out" some home equity? Maybe you're dreaming of a cruise; you need to pay tuition for your college-bound child; or you are planning some home improvements. So you will need to get a loan higher than the balance remaining of your current mortgage loan.With this goal, you need You might not increase your mortgage payemnt, though, if you have had your existing mortgage loan for a number of years, and/or your interest rate is high.
Do you want to cash out some equity to consolidate other debt? Great idea! If you have the home equity for it, paying off 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.
Paying it off Sooner
Are you dreaming of paying off your loan sooner, while beefing up your home equity quicker? Then, you want to look into refinancing to a short term mortgage loan - such as a fifteen-year loan. The monthly payments will likely be more than they were with the longer term mortgage, but in exchange, that you will pay considerably less interest and will build up equity quicker. On the other hand, if your existing longer term loan has a low balance remaining, and was closed a number of years ago, you might be able to make the switch without paying more each month. To help you determine your options and the many benefits of refinancing, please contact us at 516-431-2009. We are here for you.
Curious about refinancing your home? Call us at 516-431-2009.