If you bought your dream home in New York and are looking to refinance, don’t rush to refinance your home just yet until you have read the do’s and don’ts of mortgage refinancing in New York. Take a look at what refinancing your property involves
Do refinance your mortgage if you want to get out of a high interest rate loan to take advantage of lower rates. This is a very good idea, but only if you plan to stay in your home long enough to break-even.
Don’t refinance if the rate isn’t lower than your current mortgage rate. If your current rate is higher than they are now and you have a good credit rating, consult a New York mortgage lender to see what they can do for you.
Do refinance if you have an adjustable-rate mortgage. If you currently have an adjustable rate loan (ARM), it is best to switch to a fixed-rate loan. This would be a good time to consider refinancing your home loan in New York.
Don’t refinance if you are not going to save any money. It is not a good idea to refinance if you are not going to save a substantial amount of money over time. Consider any closing costs, prepayment penalty fees, loan origination fee, appraisal fee and other miscellaneous costs that you will acquire when refinancing your mortgage.
Do refinance your New York Mortgage if your interest will change to at least two percent and you can get a mortgage with no origination or discount fees, or closing fees. There are several programs available that will waive closing costs or pay part of the closing costs and other fees. But first determine the costs and the savings to see if it would be good for you.
Don’t refinance if you plan to sell your home within two years. It does not make sense to refinance if you plan to sell your home. However, if you plan to retire in your home, refinancing might be worth it.
Do refinance if you currently have an adjustable rate mortgage (ARM). A fixed-rate loan is best and your monthly payments will not change, whereas an adjustable rate mortgage is not consistent. An adjustable rate mortgage will allow you to know what your interest payments and principal will be throughout the entire loan.
Don’t do a mortgage refinancing in New York if you only want to take a luxury vacation or to buy a car. It is best to refinance if you want to remodel your home, pay large medical bills, pay for your child’s college tuition, or to pay off high interest bills.
Do refinance if you want to build up equity more quickly. By converting to a loan with a shorter term, you can build up equity faster than with longer term mortgages.
So should you refinance? Hopefully the do’s and don’ts of mortgage refinancing in New York will help guide you in the right direction.