Selecting a Refinancing Option
There aren't as many loan program choices as there are borrowers, but at times it seems like it! Call us at (732) 969-9300 and we can work with you to qualify you for the best refinance loan program to fit your financial situation. surveying your choices, you can list what you want to achieve with your refinance.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? In that case, your best choice may be a low fixed-rate loan. Maybe you are currently in a loan with a high, fixed interest rate, or a mortgage with which the interest rate varies - an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even if interest rates rise. If you are not expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can particularly be a great choice. However, an ARM with a initial low payment could be a wiser way to lower your payments if you see yourself moving in the next few years.
Are you refinancing mainly to "cash out" some home equity? Your home needs improvements; your son has gone to college and needs tuition money; or you are taking your family on a cruise. In this case, you'll need to look for a loan above the balance remaining of your existing mortgage.With this goal, you will need If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you may be able to do this without making your mortgage payment bigger.
Consolidating Your Debt
Maybe you hope to pull out a portion of the home equity (cash out) to use toward other debt. If you have some debt with steep interest (such as credit cards or car loans), you may be able to take care of that debt with a loan with a lower rate with your refinance, if you have the right amount of equity.
Getting a Shorter Term Loan
Do you hope to build up equity more quickly, and have your mortgage paid off more quickly? You should consider refinancing to a shorterterm loan, like a 15-year mortgage loan. Although your monthly payment amount will usually be increased, you can be paying less interest; so your home equity will rise up faster. However, if you've had your existing thirty-year mortgage loan for a number of years and the loan balance is rather low, you may be do this without raising your monthly payment — you might even be able to save! To help you understand your options and the multiple benefits of refinancing, please call us at (732) 969-9300. We are here for you.
Curious about refinancing? Call us at (732) 969-9300.