Which Refinancing Program is Best for You?
When you are overwhelmed with so many options, it may seem like there are even more refinance programs than borrowers! We can guide you to find the refinance program that will fit your needs the best. Contact us at (732) 969-9300 to begin the process. In the interest of looking at your options, you should determine what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, your best choice may be a low fixed-rate loan. 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). Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the loan, even as interest rates rise. If you are not expecting to sell your home in the near future (about 5 years), a fixed rate mortgage loan can especially be a great option. However, an ARM with a low intitial payment could be a better way to lower your mortgage payments if you expect to move in the next few years.
Refinancing to Cash Out
Are you hoping to cash out some of your equity with your refinance? Your home needs updating; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. In this case, you will need to apply for a loan higher than the balance remaining of your existing mortgage.Then you will You'll need to get a loan for a bigger amount than the remaining balance with your present mortgage in this case. If you've had your current mortgage loan for a number of years and/or have a mortgage whose interest rate is high, you may be able to do this without making your mortgage payment bigger.
Do you want to cash out a portion of your equity to consolidate other debt? Great plan! If you have enough equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) could help save you a chunk of money each month.
Paying it off Sooner
Are you dreaming of paying your loan off faster, while beefing up your home equity more quickly? You should consider refinancing with a shorterterm loan, often a 15-year mortgage loan. Although your mortgage payments will probably be more, you will save on interest; so your equity will rise up faster. Conversely, if your current longer term mortgage loan has a small balance remaining, and was closed a while ago, you may even be able to make the move without paying more each month. To help you figure out your options and the many benefits in refinancing, please call us at (732) 969-9300. We are here for you.
Curious about refinancing? Call us at (732) 969-9300.