There are a huge number of refinancing programs available to borrowers. Call us at (732) 664-9624 and we can work with you to qualify you for the perfect loan program to fit your financial situation. surveying your choices, you need to think about what you want to achieve with your refinance.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, applying for a low, fixed-rate loan may be a wise choice for you. Maybe you currently have a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate varies. Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you lock in that low interest rate for the life of your loan. If you aren’t expecting to sell your home in the near future (about five years), a fixed-rate mortgage can particularly be a good loan option. However, an ARM with a initial low payment could be a smarter way to reduce your payments if you plan on moving in the next few years.
Refinancing to Cash Out
Is “cashing out” your primary reason for refinancing? It could be you’re dreaming of a cruise; you need to pay tuition for your college-bound child; or you are updating your kitchen. With this in mind, you’ll want to look for a loan higher than the remaining balance of your current mortgage loan.With this goal, you’ll want If you’ve had your existing mortgage for quite a while and/or have a mortgage whose interest rate is high, you may be able to do this without making your monthly payment higher.
Debt Consolidation
Do you want to cash out a portion of your equity to consolidate other debt? Great plan! If you have a fair amount of equity, paying toward other debt with rates higher than your home loan (credit cards or home equity loans, for example) might be able to save you a chunk of money each month.
Paying it off Faster
Do you need to build up equity quicker, and pay off your mortgage more quickly? If this is your hope, your refinance can move you to a loan program with a shorter term, such as a 15 year loan. The mortgage payments will probably be more than they were with a longer term loan, but the pay-off is: that you will pay substantially less interest and will build up equity quicker. However, if you have held your current thirty-year mortgage for a number of years and the loan balance is relatively low, you might be do this without increasing your mortgage payment — it’s even possible to save! To help you determine your options and the many benefits of refinancing, please contact us at (732) 664-9624. We are here for you.