Choosing a Refinancing Program
Even though it may seem like it sometimes, there are not as many refinance choices as there are borrowers! Contact us at (973) 601-2122 and we will help you qualify for the right refinance loan program for your financial situation. surveying your choices, you will need to determine your goals for the refinance.
Reducing Your Monthly Payments
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best option could be a low fixed-rate loan. Maybe you now hold a higher rate fixed rate mortgage, or perhaps you hold an ARM — adjustable rate mortgage — where the rate of interest varies. Even if rates come up later, unlike with your ARM, when you close a mortgage with a fixed rate, you lock in that low rate for the life of your loan. This kind of loan is especially a wise choice if you don't plan to move within the next 5 years or so. However, if you do see yourself moving in the near future, an ARM with a small initial rate may be the ideal way to bring down your monthly payments.
Getting Out some Cash
Are you refinancing primarily to pull out some equity for an infusion of cash? Perhaps you want to update your kitchen, pay your child's college tuition bill, or take a cruise. In this case, you will need to find a loan higher than the remaining balance on your present mortgage loan.Then you want If you've had your existing mortgage loan for quite a while and/or have a high interest mortgage, you might\could be able to do this without making your mortgage payment higher.
Do you want to pull out a portion of your equity to consolidate other debt? Great plan! If you have the home equity for it, paying off other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars each month.
Getting a Shorter Term Loan
Are you planning to fatten up your home equity faster, and pay your mortgage loan off sooner? If this is your wish, your refinance mortgage can change you to a mortgage program with a short, for example: a 15 year loan. The mortgage payments will likely be higher than with your longer term loan, but the pay-off is: you will pay considerably less interest and will build up equity more quickly. But, you could be able to switch without a higher monthly mortgage payment if your long term mortgage was closed a while ago, and the remaining balance is small. You may even pay less! To help you determine your options and the numerous benefits in refinancing, please contact us at (973) 601-2122. We are here for you.
Curious about refinancing? Give us a call at (973) 601-2122.