Which Refinancing Loan Program is Right for You?
Even though it may seem like it at times, there aren't as many refinance choices as there are applicants! Contact us at (732) 969-9300 and we will work with you to qualify you for the perfect refinance loan program to fit your situation. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.
Making Your Payments Lower
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a good choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you might want to refinance. Unlike the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of your mortgage, even if interest rates rise. If you are not expecting to move in the near future (about 5 years), a fixed-rate mortgage can especially be a good option. However, an ARM with a low intitial payment could be a better way to reduce your mortgage payments if you see yourself moving in the next few years.
Are you wanting to cash out some of your home equity with your refinance? Your house needs updating; your son has gone to University and needs tuition money; or you have a special family vacation planned. In this case, you will need to get a loan for more than the balance remaining on your existing mortgage loan.In that case, you need However, if your mortgage rate is currently high and you've held it for a long time, you may be able to reach your goals without a rise in your mortgage payment.
Consolidating Your Debt
Do you hold other debt, perhaps with a high interest rate, that you want to consolidate? If you have a fair amount of equity, taking care of other debt with higher interest that your home loan (credit cards or home equity loans, for example) may help save you a chunk of cash every month.
Building up Equity Faster
Are you dreaming of paying off your loan sooner, while building up your home equity more quickly? You should consider refinancing with a shorterterm loan, such as a 15-year mortgage loan. Your payments will probably be higher than with your long-term mortgage, but the pay-off is: you will pay substantially less interest and can build up equity quicker. However, if you've had your current thirty-year loan for a long time and the loan balance is somewhat low, you might be do this without increasing your mortgage payment — it's even possible to save! To help you figure out your options and the multiple benefits of refinancing, please contact us at (732) 969-9300. We will help you reach your goals!
Want to know more about refinancing? Give us a call at (732) 969-9300.