The fourth largest city in the state, Yonkers, NY is just two miles north of Manhattan. A mixture of cultures and industries, Yonkers is a great place to call home.
Home loans in the area
Whether you are looking for a refinance, mortgage, or home equity loan in Yonkers, NY, your first step is to understand the different types of loans that are available to you, based on your income and credit history. Most individuals qualify for the two standard kinds of mortgages: adjustable rate mortgages and fixed rate mortgages.
Adjustable rate mortgages come with an initial interest rate that remains the same through the first adjustment period of the loan. You will set your adjustment rate with your lender, but the three most typical are one, three, and five years. When you have reached your adjustment period, your lender will review the index of interest rates. If interest rates have increased during your adjustment period, so will the total loan costs and your payment amounts. If the interest rates have decreased, your payments will go down. Before you apply for this type of loan, ask your lender what index he bases his interest rates on. You should also ask for the historical performance of that index so you can get a good idea of how your loan will change over your fifteen or thirty year term.
Fixed rate mortgages: Unlike adjustable rate mortgages, fixed rate mortgages come with one interest rate for the term of the loan. While that interest rate tends to be higher than the ones with adjustable rate mortgages, your payments will never go up or down.
There are, though, many different kinds of alternative mortgages available.
Biweekly mortgages: If you want to pay off your loan much sooner, consider a biweekly mortgage. You will make payments every two weeks, but a thirty-year loan will go down to just nineteen years with this fixed rate product.
Options ARM loans: If you need a bit of flexibility in your payments each month, consider an options ARM loan. With this type of loan, your interest rate can adjust, but you will choose from an interest only payment, a minimum payment, or an amortized payment amount each month, helping you get control over your house payments.
FHA loans: If you do not have much to spend for a down payment, you still have home ownership options. Try an FHA loan with only a three percent down payment. Better yet, check out your lender’s no down payment loan options. The interest rate will probably be higher, but it will get you into your home.
Refinancing
You can refinance your Yonkers, NY mortgage after you have taken out the initial mortgage. Most lenders suggest you wait at least three years to undergo a refinance. At this time, you will replace your initial mortgage with a new one. There are a couple of reasons people choose to refinance. First, they do not like the rate or term on their old mortgage. For example, if you took out an adjustable rate mortgage, but now you do not like your payment amounts changing, maybe converting to a fixed rate product would work better for you. If you need extra time, maybe converting your fifteen-year term to a thirty-year term would work out best for you.
The other reason some people choose to refinance their Yonkers, NY mortgage is to cash-out the equity they have built up in their homes. Equity is the difference between how much you owe and what your home is worth. In most cases, lenders will let you borrow up to one hundred and ten percent of the value of your home
Home equity loans
If you like the idea of accessing your home’s equity, but you also like your mortgage’s rate and term, you can apply for a home equity loan or line of credit. With a line of credit, you get a debit account to use as you need it. With a home equity loan, you get one large payment for the equity in your home.
If you are interested in refinance, mortgage, or home equity loans in Yonkers, NY, take a moment to fill out the form below. A lender will contact you right away to discuss your needs.
