Which Refinancing Option is Right for You?
When you are overwhelmed with so many options, it may seem as if there are even more refinance loan programs than applicants! We can guide you to find the loan program that can fit your financial situation the best. Call us at (732) 969-9300 to get things started. In order to review your options, you can think about what you want to achieve with the 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. Perhaps you currently have a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of your mortgage, even as interest rates rise. A fixed-rate mortgage is especially a good idea if you don't plan to move within the next 5 years or so. However, an ARM with a initial low payment may be a smarter way to reduce your payments if you see yourself moving in the near future.
Refinancing to Cash Out
Are you wanting to cash out some of your equity in your refinance? Your house needs updating; your son has been accepted to college and needs tuition money; or you are taking your family on a cruise. So you'll want to qualify for a loan for more than the balance remaining on your existing mortgage loan.With this goal, you'll want If you've had your current mortgage for a number of years and/or have a loan with a high interest rate, you may be able to do this without increasing your monthly payment.
Perhaps you hope to pull out some equity (cash out) to use toward other debt. If you have built up some home equity, paying off other debt with rates higher than your mortgage (credit cards or home equity loans, for example) could be able to save you a chunk of money every month.
Building up Equity More Quickly
Are you dreaming of paying your loan off more quickly, while building up your equity quicker? In that case, you'll need to find out about refinancing to a short term mortgage loan - like a fifteen-year loan. Although your mortgage payments will usually be increased, you will save on interest; so your equity will build up faster. However, if you've had your current thirty-year mortgage for a long time and the remaining balance is somewhat low, you may be able to do this without raising your monthly mortgage payment — you could even be able to save! To help you determine your options and the numerous benefits in refinancing, please contact us at (732) 969-9300. We would love to help you reach your goals!
Curious about refinancing? Give us a call: (732) 969-9300.