Which Refinancing Option is Right for You?

The number of refinance options available is truly breathtaking. Contact us at (732) 969-9300 and we'll help you qualify for the best refinance program to fit your financial situation. There are some general things to bear in mind while you review your options.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? In that case, applying for a low, fixed-rate loan might be a wise option for you. Perhaps you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage loan, even if interest rates rise. If you are expecting to stay in your home for about five more years, a fixed rate loan may be a particulary good option for you. However, if you do see yourself selling your home in the near future, an adjustable rate mortgage with a low initial rate could be the best way to reduce your monthly payments.

Cashing Out

Is "cashing out" your primary reason for your refinance? It could be you need to make home improvements, pay your child's college tuition bill, or take your family on a dream vacation. With this in mind, you will want to look for a loan higher than the balance remaining on your existing mortgage.Then you'll You'll want to qualify for a loan for more than the balance remaining of your existing mortgage loan in that case. You might not increase your mortgage payemnt, however, if you have had your current mortgage for a long time, and/or your interest rate is high.

Consolidating Your Debt

Maybe you'd like to cash out some equity (cash out) to put toward other debt. If you have a fair amount of home equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) may help save you a chunk of money each month.

Switching to a Shorter Term Loan

Are you hoping to fatten up your equity faster, and pay your mortgage loan off sooner? Consider refinancing with a shorterterm loan, like a 15-year mortgage. Even though your monthly payments will likely be more, you will be paying less interest; so your equity will rise up faster. However, if you've had your existing thirty-year mortgage loan for a long time and the loan balance is relatively low, you could be do this without raising your monthly payment — it's even possible to save! To help you figure out your options and the multiple benefits in refinancing, please contact us at (732) 969-9300. We are here for you.

Curious about refinancing your home? Call us at (732) 969-9300.

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