Refinancing: Which Program is for You?

There are a huge number of refinancing options available to borrowers. Contact us at 973.249.7878 and we will work with you to qualify you for the perfect refinance loan for your financial situation. There are several things to keep in mind while you review the choices.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, a good choice could be a low fixed-rate loan. Perhaps you currently have a fixed-rate mortgage with a higher rate, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage, even when interest rates rise. If you are planning to stay in your home for at least five more years, a loan with a fixed rate may be an especially good option for you. However, if you do see yourself selling your home in the near future, an ARM with a low initial rate could be the ideal way to bring down your monthly payment.

Cashing Out

Are you planning to cash out some of your equity with your refinance? Your home needs updating; your son has gone to college and needs tuition money; or you are taking your family on a cruise. With this in mind, you need to get a loan above the remaining balance of your current mortgage loan. With this goal, you need If you've had your current mortgage loan for a number of years and/or have a loan whose interest rate is high, you might be able to do this without making your monthly payment higher.

Consolidating Debt

Do you have other debt, maybe with high interest, that you want to consolidate? If you have the equity in your home to make it work, taking care of other high-interest debt (like credit cards, home equity loans, or car loans) means you may be able to save hundreds of dollars a month.

Switching to a Shorter-term Loan

Are you dreaming of paying off your loan more quickly, while building up your equity faster? If this is your goal, your refinance mortgage can move you to a mortgage loan program with a short, for example: a 15-year loan. You will be paying less interest and increasing your equity faster, although your payments will generally be more than you were paying. But, you may be able to switch without a higher monthly payment if your long-term loan was closed a while back, and the balance remaining is low. You could even make it lower! To help you figure out your options and the many benefits of refinancing, please contact us at 973.249.7878. We are here for you.