Choosing a Refinancing Loan
There aren't as many loan program choices as there are applicants, but at times it feels like it! Call us at (732) 969-9300 and we can work with you to qualify you for the perfect refinance loan program to fit your needs. What are your reasons for your refinance loan? Keeping in mind the following will help you narrow your choices.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan could be a good option for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even when rates rise later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low rate for the life of your loan. If you are not planning on moving in the near future (about five years), a fixed rate mortgage loan can particularly be a wise choice. On the other hand, if you do see yourself selling your home in the near future, an ARM mortgage with a small initial rate could be the ideal way to reduce your monthly payments.
Are you wanting to cash out some of your home equity in your refinance? Your house needs improvements; your daughter has been accepted to college and needs tuition money; or you are taking your family on a cruise. With this in mind, you need to look for a loan above the remaining balance on your existing mortgage.In that case, you'll need However, if your mortgage rate is currently high and you've had it for quite a few years, you may be able to achieve your goals without making your mortgage payments higher.
Perhaps you'd like to pull out a portion of the equity in your home (cash out) to put toward other debt. If you have the equity in your home for it, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars monthly.
Paying it off Sooner
Do you need to build up home equity more quickly, and pay off your mortgage sooner? Then, you need to find out about refinancing to a short term mortgage loan - such as a fifteen-year mortgage program. The monthly payments will likely be more than with your longer term loan, but in exchange, that you will pay considerably less interest and will build up equity more quickly. But, you might be able to switch without much increase in your monthly payment if your longer term mortgage was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you understand your options and the multiple benefits of refinancing, please contact us at (732) 969-9300. We will help you reach your goals!
Want to know more about refinancing your home? Call us: (732) 969-9300.