Which Refinancing Option is Right for You?

There aren't as many loan options as there are borrowers, but it seems like it at times! Call us at (732) 969-9300 and we will match you with the loan program that best fits you. In the interest of looking at your options, you can consider what you want to achieve with your refinance.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? In that case, a low, fixed rate loan may be the right option for you. Maybe you are currently in a mortgage loan with a high, fixed interest rate, or a mortgage in which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage must stay at the same, low interest rate, unlike an ARM. If you are planning to live in your home for at least five more years, a fixed rate mortgage may be a particulary good fit for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate in order to achieve reduced mortgage payments.

Getting Out some Cash

Is "cashing out" your main purpose for your refinance? Your house needs improvements; your daughter has gone to college and needs tuition money; or you are taking your family on a cruise. So you will want to get a loan above the remaining balance on your current mortgage.With this goal, you want to need to qualify for a loan program for a bigger number than the balance remaining on your current mortgage loan. However, if your mortgage rate is high now and you've held it for a long time, you may be able to reach your goals without an increase in your mortgage payment.

Consolidating Your Debt

Do you hold other debt, perhaps with a higher interest rate, that you'd like to consolidate? If you have some higher interest debts (such as credit cards or car loans), you might be able to pay that debt off with a lower rate loan with your refinance, if you have enough home equity.

Switching to a Shorter Term Loan

Do you want to build up equity quicker, and have your mortgage paid off more quickly? In that case, you need to find out about refinancing to a short term mortgage - like a fifteen-year loan. The monthly payments will likely be more than with your long-term mortgage, but the pay-off is: you will pay considerably less interest and can build up equity more quickly. Conversely, if your current longer term mortgage has a low remaining balance, and was closed a while ago, you could be able to make the switch without paying more each month. To help you figure out your options and the many benefits of refinancing, please call us at (732) 969-9300. We will help you reach your goals!

Want to know more about refinancing your home? Give us a call: (732) 969-9300.

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