Which Refinancing Program is Best for You?
Even though it seems like it sometimes, there aren't as many refinance options as there are applicants! Contact us at (732) 969-9300 and we can match you with the refinance loan program that best fits you. There are several questions to ask yourself while you look at your options.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right loan program for you. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even as interest rates rise. If you are not planning a move in the near future (about five years), a fixed rate mortgage loan can particularly be a good loan option. But if you do plan to sell your home more quickly, you will want to consider an ARM with a low initial rate to get lower payments.
Refinancing to Cash Out
Is "cashing out" your main purpose for refinancing? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. So you'll need to qualify for a loan higher than the balance remaining on your present mortgage loan.In this case, you'll want to qualify for a loan program for a bigger number than the remaining balance on your present mortgage loan. However, if your interest rate is high now and you've had it for a long time, you may be able to achieve your goals without a rise in your mortgage payment.
Do you want to pull out some of your equity to consolidate other debt? Great idea! If you own some debt with high interest (like credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the right amount of equity.
Paying it off Sooner
Are you wanting to fatten your equity faster, and pay off your mortgage sooner? If this is your goal, the refinance loan can move you to a loan program with a shorter term, such as a 15 year loan. You will be paying less interest and growing your home equity faster, even though your mortgage payments will likely be higher than you were paying. But, you may be able to switch without a higher monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You could even pay less! To help you understand your options and the numerous 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.