Refinancing: Which Option is for You?
There are a huge number of refinancing options available to borrowers. We can guide you to select the refinance program that can fit your situation the best. Call us at (973) 601-2122 to begin the process. There are some general things to bear in mind while you review your options.
Making Your Payments Lower
Are achieving lower monthly payments and a better rate your main refinance goals? In that case, getting a low, fixed-rate loan might be a wise option for you. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when rates get higher later, unlike with your ARM, when you qualify for a fixed-rate mortgage, you lock in the low rate for the term of your mortgage. This is especially a good choice if you don't think you'll be moving within the next 5 years or so. However, an ARM with a low intitial payment may be a wiser way to reduce your payments if you expect to move within the near future.
Is your refinance goal mainly to "cash out" some home equity? Your house needs improvements; your daughter has been accepted to University and needs tuition money; or you are taking your family on a cruise. With this in mind, you want to get a loan above the balance remaining on your present mortgage.So you will You will be looking for a loan for more than the remaining balance of your current mortgage loan in that case. However, if your mortgage rate is currently high and you've had it for a long time, you could be able to accomplish your goals without an increase in your mortgage payment.
Do you want to pull out a portion of your equity to consolidate additional debt? Good idea! If you have the equity in your home to make it work, paying off other debt with higher interest than the rate on your mortgage (such as home equity loans, student loans, or credit cards) means you can save possibly hundreds of dollars each month.
Switching to a Shorter Term Loan
Are you hoping to fatten up your equity faster, and pay your mortgage loan off sooner? You should consider refinancing with a shorterterm loan, often a 15-year mortgage. You will be paying less interest and growing your home equity more quickly, even though your payments will generally be bigger than they were. However, if you have held your existing thirty-year loan for a long time and the remaining balance is relatively low, you could be do this without raising your mortgage payment — it's even possible to save! To help you determine your options and the many benefits in refinancing, please contact us at (973) 601-2122. We are here for you.
Curious about refinancing? Give us a call: (973) 601-2122.