Are you stuck in a high-interest-rate mortgage and taking out some refinance loans Long Island? This may be the perfect time. Interest rates are extremely low and lenders are loosening their criteria for refinancing. There are several reasons to refinance, but the primary ones are to get a lower interest rate or get out of a variable rate loan, pull out equity, or to lower a monthly payment. When you begin researching refinancing, you will find there are two types of refi loans: cash out and rate and term refinancing. The cash out is exactly what is sounds like, pulling cash out of the loan and the rate and term refi is when you refinance a remaining balance for a different term/and or lower interest rate.
This is a great time to refinance. Interest rates are lower than they have been in years. While it is currently cheaper to borrow money, it is also true that this will not last forever. It does not appear that interest rates will climb drastically any time soon, but it is still a good idea to refinance now instead of waiting.
Another good reason to refinance now is that insurance for mortgages has also decreased. The savings from lower mortgage insurance costs can be $900 a year for a refinance. If you have an FHA loan, it is an especially good time to refinance since the Feds recently lowered the mortgage insurance rate.
If you have owned your home for several years, it has probably appreciated in value. Homes are starting to recover their value following the housing bust, so it is a good time to see if you can refinance your home and pull out extra cash if it has increased in value.
Right now is one of the best times in recent history to refinance a home. Whether you want to lower an interest rate, pull out some cash or modify your mortgage payment, there may never be a better time.