Refinancing: Which Program is for You?

	In the market for a mortgage loan? We can help! Call us at 732-643-0200. Ready to begin? Apply Here.

There are not as many refinance loan programs as there are applicants, but it feels like it sometimes! Contact us at 732-643-0200 and we will help you qualify for the perfect refinance program to fit your financial situation. There are some general questions to ask yourself while you look at the options.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, the best choice may be a low fixed-rate loan. Perhaps you now hold a higher rate fixed rate mortgage, or maybe you hold an ARM — adjustable rate mortgage — where the rate of interest can vary. Even if rates get higher later, unlike with your ARM, when you close a fixed-rate mortgage, you lock in that low rate for the life of your loan. This is particularly a wise choice if you don't think you'll be selling your home within the next five years or so. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.

Refinancing to Cash Out

Is "cashing out" your main reason for your refinance? Your house needs renovating; your son has been accepted to college and needs tuition; or you have a special family vacation planned. Then you'll need to get a loan for more than the balance remaining of your existing mortgage.In this case, you want to qualify for a loan program for a bigger amount than the remaining balance on your existing mortgage. You may not have an increase in your mortgage payment, though, if you have had your existing mortgage loan for a while, and/or your loan interest rate is high.

Debt Consolidation

Do you want to pull out a portion of your equity to consolidate additional debt? Yes you can! If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (for example: credit cards, home equity loans, or car loans) means you can possible save several hundred dollars each month.

Building up Equity More Quickly

Are you wanting to fatten up your home equity faster, and get your mortgage paid off more quickly? If this is your plan, your refinance loan can move you to a mortgage loan program with a short, like a 15 year loan. Your payments will likely be more than with the long-term mortgage, but in exchange, that you will pay quite a bit less interest and can build up equity more quickly. But, you may be able to switch without a higher monthly payment if your long term loan was closed a while ago, and the balance remaining is low. You could even pay less! To help you determine your options and the many benefits in refinancing, please contact us at 732-643-0200. We can help you reach your goals!

Curious about refinancing your home? Give us a call at 732-643-0200.