Every year, countless Long Islanders refinance their homes. Usually people decide to do this so they can save money to pay down their debts. But that's not the only reason. A mortgage refinance has many benefits.
Here's what you should keep in mind so you can make the right choice:
Know What You’re Getting Into
A mortgage refinance isn’t in the cards for everyone. For some people, it wouldn’t make sense financially at this point in their lives. But for others, it's an ideal solution. Before you pursue it, you need to understand exactly what it means to refinance your mortgage.
In short, refinancing lets you get a new mortgage loan to pay off your current one. You refinance only if you can get a lower mortgage interest rate because that will help you save money each month. You can use that extra money to pay off other loans that may have higher interest, like a credit card, or if you want to invest in a fund to pay for your children's college education, for example.
Researching the main reasons why people should refinance, as well as why people shouldn’t, will put things into perspective. You may find that refinancing your Long Island home would improve your financial situation.
Contact the Professionals
Once you appreciate what refinancing your home entails, you should contact a Long Island mortgage company to see if you would qualify. A good mortgage loan originator will not only address your concerns, but also share more information about refinancing your home—touching on key points that may not have crossed your mind. For example, a refinance typically takes 45 to 60 days to close. To be approved, you will also need to provide investment income, alimony child support income and other financial details.
If You’re Unsure, Don’t Make Any Rash Decisions
When it comes to making any financial decision, don’t rush into it. Consider all your options—the pros and the cons—and do what is best based on the information you’ve been given. If refinancing your Long Island home is appealing to you, start the application process. If you want to wait and think about it a little longer, that’s okay, too. But be aware that current interest rates are subject to change. They may be low now, but there's no guarantee they won't rise when you're finally ready to refinance.
In some cases, you may decide that you want to refinance but you're unsure whether you should do it through your current mortgage company. If you feel pressure from your present mortgage loan originator, it’s probably best to contact another lender because you have to be confident about your decision before you commit to anything new. At a good mortgage company, experienced professionals will offer you sound advice, and they will never try to force you to making a decision that's not right for you.
Want some more tips for refinancing your home? Read our Ultimate Guide to Refinancing on Long Island.
