Home
equity loans in New York:
Second
mortgages with a fixed rate of interest are called home
equity loans. Home equity loan rates are usually higher
than first mortgage interest rates. Still, there are situations
where a home equity loan makes more sense than a refinance
mortgage. These include:
·
If you have a low-rate first mortgage.
·
If you don't want to incur the higher closing costs of
a refinance.
·
If you want to pay off the home equity loan in
less than 30 years.
Evaluating
New York mortgages:
Start your evaluation by developing an understanding
of how different loan types compare, rate-wise. When you
know, for example, that 15-year fixed-rate mortgages (FRMs)
in New York have lower rates than 30-year FRMs, you might
decide to refinance your existing loan with a 15-year
program. You can then use our mortgage calculators to
estimate the payments for different loan types. Mortgage
calculators are the risk-free way to experiment with different
loan amounts, as well. As you work through this process,
think about which loan types are most suitable for your
situation. If you plan to remodel, budget for a higher
loan amount. If you plan to sell in a few years, run the
numbers on an ARM.
With
a firm understanding of your budget, and a newfound fluency
in the language of mortgage loans, you're ready to select
a few brokers from our New York broker directory. Make
a point to consult with several lenders and submit several
loan applications-it's the best way to land the lowest
rate mortgage available.
Adjustable-rate mortgages in New York:
Adjustable-rate
mortgages (ARMs) begin with a low, fixed interest rate
that converts to a variable rate after a certain period
of time. Since the initial rate usually lasts for one,
three, or five years, ARMs can be appropriate for New
York borrowers who expect an income increase over time.
ARMs might also work for borrowers who have seasonal income
fluctuations, or homeowners who intend to sell their properties
in the short-term.
