Refinancing: Which Option is for You?
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There are a huge number of refinancing options available to borrowers. We can guide you to find the refinance program that will fit your needs the best. Contact us at 718-441-7000 to get started. There are some general questions to ask yourself as you consider your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice might 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. Even when rates get higher later, unlike with your ARM, when you get a fixed rate mortgage, you lock in that low interest rate for the term of your mortgage. If you aren't planning on moving in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise option. On the other hand, if you can see yourself moving within several years, an ARM mortgage with a small initial rate may be the best way to lower your monthly payments.
Is your refinance goal primarily to "cash out" some home equity? Maybe you need to update your kitchen, pay your child's college tuition bill, or go on a dream vacation. In this case, you'll need to qualify for a loan higher than the balance remaining of your present mortgage loan.Then you will need You may not increase your mortgage payment, though, if you've had your current mortgage loan for a number of years, and/or your interest rate is high.
Do you have other debt, maybe with a high interest rate, that you'd like to consolidate? If you have some debt with steep interest (like credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan with your refinance, if you have the equity built up to make it work.
Paying it off Sooner
Do you need to build up equity more quickly, and have your mortgage paid off sooner? If this is your goal, the refinance loan can move you to a loan program with a short, for example: a 15 year loan. Even though your monthly payments will likely be increased, you can save on interest; so your equity will rise up faster. Conversely, if your existing long-term loan has a low remaining balance, and was closed a while ago, you may be able to make the change without paying more each month. To help you determine your options and the numerous benefits in refinancing, please contact us at 718-441-7000. We are here for you.
Want to know more about refinancing your home? Give us a call: 718-441-7000.