Which Refinancing Loan Program is Best for You?
The number of refinance options available to borrowers can be overwhelming. Call us at (732) 969-9300 and we will match you with the refinance program that fits you best. There are several things to bear in mind as you consider your choices.
Reducing Your Monthly Payments
Are achieving better mortgage payments and an improved rate your main reasons for refinancing? In that case, a low, fixed rate loan may be the best loan program for you. Maybe you are presently in a mortgage with a high, fixed interest rate, or a mortgage in which the interest rate varies : an adjustable rate mortgage (ARM). Different that the ARM, your low fixed-rate mortgage stays at a certain low rate for the term of the mortgage loan, even when interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can particularly be a wise option. However, if you can see yourself moving within the next few years, an adjustable rate mortgage with a small initial rate could be the ideal way to reduce your monthly payments.
Refinancing to Cash Out
Are you refinancing mainly to "cash out" some home equity? Your house needs updating; your daughter has been accepted to University and needs tuition; or you are taking your family on a cruise. So you'll need to apply for a loan above the balance remaining of your current mortgage loan.Then you'll want You may not increase your mortgage payemnt, however, if you have had your existing mortgage for a long time, and/or your loan interest rate is high.
Consolidating Your Debt
Perhaps you hope to pull out some of the home equity (cash out) to put toward other debt. If you hold any debt with steep interest (such as credit cards or vehicle loans), you may be able to pay that debt off with a lower rate loan through your refinance, if you have the equity built up to make it work.
Paying it off Faster
Do you plan to build up home equity quicker, and pay off your mortgage sooner? Then, you'll need to look into refinancing to a short term mortgage - like a fifteen-year loan. Even though your monthly payment amount will usually be more, you will save on interest; so your home equity will rise up faster. However, if you've held your existing 30 year mortgage for a number of years and the remaining balance is rather low, you could be able to do this without increasing your mortgage payment — you might even be able to save! To help you figure out your options and the many benefits in refinancing, please contact us at (732) 969-9300. We are here for you.
Curious about refinancing? Give us a call: (732) 969-9300.