Selecting a Refinancing Loan
There are a huge number of refinancing programs available to borrowers. Contact us at (732) 969-9300 and we will match you with the loan program that fits you best. What are your goals for refinancing? Keeping in mind the information below will help you begin your decision process.
Lowering Your Payments
Are getting reduced payments and a lower rate your main reasons for refinancing? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you may want to refinance. Even if interest rates rise, a fixed rate mortgage must remain at the same, low interest rate, unlike an ARM. This kind of loan can be especially a wise option if you don't think you'll be moving within the next five years or so. But if you do expect to sell your home more quickly, you will need to consider an ARM with a low initial rate in order to achieve lower monthly payments.
Refinancing to Cash Out
Are you planning to cash out some of your home equity with your refinance? It could be you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. In this case, you'll need to find a loan for more than the balance remaining on your current mortgage loan.Then you'll want However, if your interest rate is currently high and you have held it for quite a few years, you could be able to reach your goals without making your mortgage payments rise.
Consolidating Your Debt
Maybe you'd like to pull out some of the home equity (cash out) to use toward other debt. If you own any debt with high interest (such as credit cards or vehicle loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the right amount of home equity.
Paying it off Faster
Are you planning to fatten up your home equity faster, and pay your mortgage loan off more quickly? If this is your plan, the refinance loan can switch you to a loan program with a short, for example: a 15 year loan. The payments will probably be higher than they were with your long-term mortgage loan, but the pay-off is: you will pay considerably less interest and can build up equity quicker. However, if you have had your current thirty-year mortgage for a long time and the loan balance is rather low, you may be do this without raising your mortgage payment — it's even possible to save! To help you figure out your options and the numerous benefits in refinancing, please contact us at (732) 969-9300. We would love to help you reach your goals!
Curious about refinancing your home? Give us a call: (732) 969-9300.