Top 5 Reasons For Refinancing

By Allison E. Beatty
Local Lender Columnist
Dec 13, 2006
There are a number of great reasons to consider refinancing your New Jersey mortgage. Here are the top 5, which explain the ins and outs of mortgage refinancing.

Look For Lower Mortgage Rate

Many New Jersey homeowners are constantly on lookout for lower interest rates. This obviously reduces your long-term financial commitment and your monthly loan payments. If you want to join the club, check mortgage web sites and local New Jersey lenders for current rates.

Take Cash Out Of Home Equity

Home values have appreciated in the New Jersey market in recent years. If you're sitting on some extra equity, you can tap into it to cover some important expense, such as:

• A new kitchen, bath or roof (or other home improvement projects).
• College tuition funds.
• A new car.

Pay Off Debt With Mortgage Funds

Debt consolidation is another key focus for those who are refinancing their New Jersey mortgages. If you owe money on high interest credit cards, mortgage refinancing allows you to roll those funds into a mortgage at a lower interest rate.

Get Fixed Mortgage Rate

If you have an adjustable rate mortgage that on the verge of an increase, consider refinancing into a fixed rate. This type of move will give you more stability and reduce any concerns about rates moving higher.

Move to Adjustable Rate

Adjustable rate mortgages often carry lower interest rates, which entice many New Jersey homeowners into refi. If you plan to move in a short time – before the rate would adjust upward – then refinancing to an adjustable rate makes sense.

There are many reasons to refinance you New Jersey mortgage. Spend some time thinking about your short- and long-term financial goals to determine if it's the right time for you.

About the Author
Allison E. Beatty is a syndicated real estate writer who has been writing columns for 15 years.