Selecting a Refinancing Loan
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The huge number of refinance options available to borrowers is truly breathtaking. Call us at 516 536-2525 and we'll work with you to qualify you for the right refinance loan program for your financial situation. There are some general things to keep in mind as you look at your choices.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Perhaps you are currently in a loan with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage loan must remain at the same, low interest rate, unlike an ARM. If you are planning to live in your home for about five more years, a fixed rate mortgage may be an especially good fit for you. However, an ARM with a low initial payment could be a better way to reduce your payments if you plan on moving in the next few years. Due to refinancing, your total finance charges may be higher over the life of the loan.
Are you refinancing primarily to pull out some of your home equity for an infusion of cash? Your house needs improvements; your son has been accepted to University and needs tuition; or you have a special family vacation planned. Then you will need to get a loan above the balance remaining on your current mortgage loan.So you'll need If you've had your current mortgage loan for a number of years and/or have a loan with a high interest rate, you may be able to do this without increasing your monthly payment.
Consolidating Your Debt
Do you have other debt, maybe with a high interest rate, that you want to consolidate? If you have built up some equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may help save you a chunk of cash every month.
Getting a Shorter Term Loan
Are you hoping to fatten up your home equity faster, and get your mortgage paid off more quickly? Consider refinancing with a short-term loan, like a 15-year mortgage. You will be paying less interest and growing your home equity faster, although your mortgage payments will likely be more than they were. However, if you have held your current 30 year loan for a long time and the remaining balance is relatively low, you might be able to do this without increasing your mortgage payment — you might even be able to save! To help you understand your options and the many benefits in refinancing, please call us at
516 536-2525. We are here for you.
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