Selecting a Refinancing Loan

There aren't as many loan program choices as there are borrowers, but it seems like it sometimes! Call us at (732) 969-9300 and we will match you with the loan program that best fits you. There are several questions to ask yourself while you look at the options.

Making Your Payments Lower

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be the best choice for you. Perhaps you now have a higher rate fixed rate mortgage, or maybe you have an ARM — adjustable rate mortgage — where the rate of interest varies. Even when interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This kind of loan can be particularly a good idea if you aren't planning a move within the next 5 years or so. But if you do expect to move more quickly, you will need to consider an ARM with a low initial rate to get reduced payments.

Cashing Out

Is "cashing out" your main reason for your refinance? Your home needs renovating; your son has been accepted to college and needs tuition money; or you have a special family vacation planned. So you'll want to find a loan above the balance remaining on your present mortgage loan.Then you'll want to find a loan program for a bigger amount than the balance remaining on your existing mortgage loan. However, if your mortgage rate is currently high and you've held it for quite a few years, you may be able to achieve your goals without an increase in your mortgage payment.

Consolidating Debt

Do you want to pull out a portion of your home equity to consolidate additional debt? Great plan! If you have any higher interest debts (such as credit cards or car loans), you might be able to take care of that debt with a lower rate loan through your refinance, if you have the equity built up to make it work.

Getting a Shorter Term Loan

Do you hope to build up home equity more quickly, and have your mortgage paid off more quickly? You should consider refinancing with a shorterterm loan, like a 15-year mortgage loan. Although your mortgage payment amount will probably be more, you can be paying less interest; so your home equity will rise up faster. However, if you have had your current 30-year mortgage for a long time and the remaining balance is rather low, you could be able to do this without increasing your monthly payment — you may even be able to save! To help you understand your options and the many benefits in refinancing, please contact us at (732) 969-9300. We would love to help you reach your goals!

Curious about refinancing your home? Give us a call: (732) 969-9300.

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