Refinancing: Which Program is for You?

There aren't as many loan programs as there are borrowers, but it feels like it sometimes! Contact us at (732) 969-9300 and we'll help you qualify for the best refinance loan to fit your needs. In the interest of looking at your choices, you need to think about what you want to achieve with your refinance.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, getting a low, fixed-rate loan may be a good choice for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of the mortgage, even if interest rates rise. If you are expecting to stay in your home for about five more years, a fixed rate loan may be a particulary good option for you. However, an ARM with a low intitial payment may be a wiser way to reduce your mortgage payments if you plan on moving in the next few years.

Refinancing to Cash Out

Is your refinance goal mainly to pull out some home equity for an infusion of cash? Perhaps you need to pay for home improvements, take care of your college kid's tuition, or take a cruise. With this in mind, you'll need to qualify for a loan higher than the remaining balance on your existing mortgage loan.So you'll want to find a loan for a bigger number than the balance remaining on your present mortgage. If you've had your current mortgage for a long time and/or have a loan whose interest rate is high, you might\could be able to do this without increasing your mortgage payment.

Consolidating Debt

Do you want to pull out a portion of your home equity to consolidate additional debt? Yes you can! If you have the home equity for it, taking care of other debt with higher interest than the rate on your mortgage (for example: home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your budget each month.

Building up Equity More Quickly

Are you dreaming of paying off your loan faster, while building up your home equity quicker? You should consider refinancing to a short-term loan, like a 15-year mortgage. You will be paying less interest and growing your equity more quickly, although your monthly payments will usually be bigger than they were. However, if you've had your current 30 year mortgage for a number of years and the remaining balance is somewhat low, you may be able to do this without raising your monthly mortgage payment — you may even be able to save! To help you understand your options and the many benefits in refinancing, please contact us at (732) 969-9300. We would love to help you reach your goals!

Curious about refinancing? Give us a call at (732) 969-9300.

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