Choosing a Refinancing Option

Although it seems like it sometimes, there aren't as many loan programs as there are borrowers! Contact us at (973) 601-2122 and we will match you with the refinance loan program that is ideal for you. What are your reasons for your refinance loan? Keeping in mind the following will help you narrow your choices.

Making Your Payments Lower

Is your refinance primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be the right choice for you. Perhaps you are now in a loan with a high, fixed interest rate, or a mortgage loan in which the rate of interest varies - an adjustable rate mortgage (ARM). Even as interest rates rise, a fixed-rate mortgage must stay at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about 5 years), a fixed-rate mortgage can especially be a good option. However, an ARM with a initial low payment could be a better way to reduce your mortgage payments if you plan on moving in the next few years.

Refinancing to Cash Out

Are you hoping to cash out some of your home equity with your refinance? It could be you're planning a special vacation; you need to pay college tuition for your child; or you are updating your kitchen. With this in mind, you need to get a loan above the remaining balance of your existing mortgage.With this goal, you'll need You may not increase your monthly payemnt, however, if you have had your existing mortgage for a number of years, and/or your loan interest rate is high.

Consolidating Your Debt

Do you hold other debt, maybe with high interest, that you'd like to consolidate? If you have the equity in your home to make it work, paying off other high interest debt (for example: credit cards, home equity loans, or car loans) means you can save possibly several hundred dollars a month.

Paying it off Sooner

Are you hoping to fatten your equity faster, and get your mortgage paid off sooner? Consider refinancing to a short-term loan, often a 15-year mortgage loan. Although your mortgage payment amount will usually be more, you will be paying less interest; so your equity amount will rise up faster. However, if you have held your existing 30 year mortgage for a number of years and the loan balance is relatively low, you may be able to do this without increasing your mortgage payment — you could even be able to save! To help you figure out your options and the many benefits of refinancing, please call us at (973) 601-2122. We are here for you.

Want to know more about refinancing? Give us a call: (973) 601-2122.

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