You will have a hard time finding a nicer place to live than the village of Valley Stream, New York. It is in Naussau County on Long Island, which means that New York City is just a hop, skip and a jump away, but life in Valley Stream is decidedly not “big city” living. There is a low crime rate in Valley Stream, and the schools are first-class. Valley Stream is a bit of true Americana, with beautiful Cape Cod and Colonial homes, acres of parks and beautiful neighborhoods.
Your home is probably your greatest investment. When you get a home loan—whether it’s a new mortgage, a refinance, or a home equity loan—you are making a major financial commitment, and you want to carefully evaluate several loan offers to make sure that you are investing wisely.
Mortgage Loans
Most people need a mortgage to pay for a home. They may have saved up a substantial down payment, but few of us are able to pay cash for a house. There are several different kinds of mortgages and each type is a good investment in some—but not all—situations.
A fixed rate mortgage is a good investment if you are a traditional homebuyer with a hefty down payment and an excellent credit rating. You are the kind of homebuyer that lenders drool over, and you will get the best interest rate available. There is no risk in a fixed rate mortgage, as your interest rate and payments are unaffected by the economy, market conditions, or anything else. If interest rates happen to go down in the future, you will probably be able to refinance to take advantage of them.
Adjustable rate mortgages are the best choice for a lot of buyers, especially first-time buyers who are just starting their careers and expect to be transferred relatively soon. An ARM will probably cost more than a fixed rate loan if you pay it off, but may cost less if you sell or refinance within ten years.
Refinance
When you refinance your home, you get a new mortgage and pay off the old one. Refinancing can accomplish a lot of things for you, depending on what kind of loan you get. You can lower your house payments, shorten or extend the term of your loan or get money back. You lower your house payments by getting a lower interest rate or by extending the term of the loan.
Sometimes refinancing allows you to shorten the term of your loan without increasing your payments. In other words, you keep making the same payment but you pay your house off faster. In other situations, you might extend the term of the loan, spreading the payments out over a longer period of time and lowering your monthly payment.
When you refinance, you can borrow just enough to pay off the original mortgage or, if you have equity in the home, you can borrow enough to pay off the mortgage and get some money back. You can refinance your home for 80% or more of its assessed value. After you pay off your original loan, you can use the remaining funds for any purpose. In most cases, you will be able to deduct the interest on the loan from your taxes, too.
Home Equity Loans
You can also use your equity as collateral for a home equity loan or second mortgage. In this situation, you do not pay off your original mortgage. Instead, you take out a second one. You will get the same amount of cash as with a refinance, but you will have two house payments.
Whether you are buying, refinancing or getting a home equity loan, it starts with finding a lender. You can do that by filling out the form on this page.
