Choosing a Refinancing Option

When you are overwhelmed with all the choices, it may seem like there are even more refinance loan programs than borrowers! Call us at 973-218-0400 and we can match you with the refinance loan program that is ideal for you. surveying your choices, you will need to think about what you want to achieve with your refinance.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the best choice for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loan programs that you might want to refinance. 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. This kind of loan is particularly a wise choice if you don't think you'll be selling your home within the next five years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get lower payments.

Refinancing to Cash Out

Is your refinance goal primarily to pull out some of your equity for an infusion of cash? It could be you're going on a much needed vacation; you have to pay tuition for your college-bound child; or you are planning some home improvements. Then you'll want to get a loan for more than the remaining balance of your current mortgage.In this case, you'll need If you've had your current mortgage for a number of years and/or have a mortgage loan whose interest rate is high, you might\could be able to do this without making your monthly payment higher.

Debt Consolidation

Do you have other debt, maybe with high interest, that you want to consolidate? If you have the home equity to make it work, paying off other high interest debt (like home equity loans, student loans, or credit cards) means you may be able to save hundreds of dollars monthly.

Getting a Shorter Term Loan

Are you dreaming of paying off your loan more quickly, while beefing up your home equity more quickly? If this is your wish, your refinance loan can move you to a mortgage program with a shorter term, like a 15 year loan. You will be paying less interest and increasing your equity faster, although your payments will generally be bigger than they were. Conversely, if your existing longer term loan has a low remaining balance, and was closed a number of years ago, you could be able to make the move without paying more each month. To help you understand your options and the numerous benefits of refinancing, please contact us at 973-218-0400. We can help you reach your goals!

Want to know more about refinancing? Give us a call: 973-218-0400.