Best Mortgage Refinance Companies in New York City

Frequently Asked Questions

• Introduction

  Refinancing a mortgage can be a complicated process, and hiring a mortgage refinancing broker can make it simpler and faster. There are several things you can do to protect your interests and help your broker complete the process for you.
  

  
  

  Check a potential broker’s online reviews to find one with a good reputation. In addition to the opinions of past clients, check to see if a broker has an online portfolio, which can support the reviews you find from past clients to show a broker’s trustworthiness. This can also help you establish if a broker has handled financing for properties similar to yours.
  

  
  

  Get a written summary of a broker’s rates before committing so you know exactly what hiring your chosen mortgage refinance broker will cost. Find out which lenders work with your broker and what information they need to successfully refinance your mortgage.
  

• What is rate and term refinancing, and how can it benefit homeowners in New York City?

  Rate and term refinancing is the process of replacing an existing mortgage with a new one that has a lower interest rate or a more extended repayment period. Lenders issue offers that match national interest rates by examining financial stability variables such as credit standing and debt-to-income ratios. This refinancing approach benefits New York City borrowers by considerably reducing long-term financial responsibilities.

• Who are the ideal candidates for mortgage refinancing in New York City?

  In New York City, mortgage refinancing suits those with current interest rates at least two percentage points above market rates. However, individual cases may vary, with some benefiting from even smaller differences. Ideal candidates include those who desire a reduced rate, a shorter loan term to build equity faster, a different mortgage type like converting to an ARM with better features, and borrowers who want to access home equity for significant expenses like education.

• How much are refinance closing costs in New York City?

  Closing costs for refinancing a mortgage in New York City typically range between 3% and 5% of the mortgage amount. These costs encompass various expenses related to underwriting and closing on the loan. Compared to other states, New York's refinancing closing costs stand as the highest across the nation, reflecting the sum of several unique service fees in the state.

• What is cash-out refinancing, and who in New York City is most suited to utilize this refinancing method?

  Cash-out refinancing allows property owners to leverage the accrued equity in their homes. This refinancing option results in a new loan surpassing the current mortgage's due amount. Once the prior mortgage is settled, owners obtain the surplus funds. In New York City, cash-out refinancing suits those in condos, co-ops, townhouses, or buildings housing up to four families. Those with appreciating properties stand to benefit most.

• What important aspect of mortgage refinancing homeowners in New York City should be aware of?

  Homeowners in New York City considering mortgage refinancing should recognize that one aspect of this financial strategy may include an extension of the loan period. For those well on their way to settling a previous loan, refinancing could prolong the loan term. While this may offer the allure of reduced monthly payments, it's an essential factor to consider in the context of long-term financial planning.

• How do you refinance a mortgage?

  Decide why you’re refinancing, such as to get a lower interest rate, pay off your loan faster, or to get a lower monthly payment. Share your credit information with your broker along with information about the equity you have in your home. Review your mortgage refinance broker’s quotes and choose the best loan terms.