Refinancing: Which Program is for You?
There are not as many refinance loan programs as there are borrowers, but it feels like it sometimes! We can guide you to choose the loan program that will fit your needs the best. Call us at (732) 969-9300 to get started. There are some general things to bear in mind as you review the choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be your best option. Maybe you are presently in a mortgage with a high, fixed interest rate, or a loan in which the rate of interest varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the term of the mortgage loan, even if interest rates rise. This kind of loan is especially a good choice if you don't think you'll be selling your home within the next 5 years or so. However, an ARM with a low intitial payment may be a smarter way to reduce your mortgage payments if you expect to move within the near future.
Refinancing to Cash Out
Are you wanting to cash out some of your equity in your refinance? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are updating your kitchen. Then you will need to find a loan higher than the balance remaining on your present mortgage.So you will You will need to get a loan for more than the current balance on your existing home loan in that case. If you've had your existing mortgage loan for a long time and/or have a loan with high interest, you might\could be able to do this without increasing your monthly payment.
Do you hold other debt, maybe with high interest, that you need to consolidate? If you have some higher interest debts (like credit cards or car loans), you might be able to pay that debt off with a lower rate loan through your refinance, if you have enough equity.
Paying it off Sooner
Are you dreaming of paying off your loan sooner, while beefing up your equity more quickly? In that case, you need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year mortgage loan. The monthly payments will likely be higher than with a long-term mortgage loan, but in exchange, that you will pay considerably less interest and can build up equity more quickly. But, you could be able to switch without a higher monthly mortgage payment if your long term mortgage was closed a while back, and the remaining balance is small. You could even make it lower! To help you figure out your options and the multiple benefits in refinancing, please call us at (732) 969-9300. We are here for you.
Want to know more about refinancing your home? Call us at (732) 969-9300.