When you choose to refinance a home in New Jersey, it is important to have a knowledgeable attorney on your side. With more than 25 years experience in real estate law, we can explain the difference between refinancing and a mortgage modification. In addition, our attorneys can determine which would work best in your situation.
If you are considering refinancing your home, fill out our free evaluation form. For more information, read below for a list of frequently asked questions regarding refinancing a home in New Jersey.
What’s the difference between refinancing and a mortgage modification?
A mortgage modification refers to a mortgage that the lender changes, or modifies. A refinance is a new mortgage which includes a new amount, new interest rate, monthly payment and term.
When a lender wants to keep your mortgage, they will offer a lower rate for the balance of the term you owe. A modification can be successful in many situations, because it doesn’t require title insurance for a lender policy, which is the most expensive part every New Jersey closing. However, if you want more money, lenders require a refinance. In this situation, you need an experienced New Jersey real estate lawyer to represent you and help you get it done correctly.
Should I refinance now or modify my mortgage?
If you want to refinance a home in New Jersey, you will need either more money, a lower rate, a different term or a switch from an adjustable to a fixed. If you choose a mortgage modification, you keep your old loan, but with a reduced interest rate. This is usually cheaper than a refinancing, which requires a new mortgage and legal fee. Choosing between refinancing and a mortgage modification can be a difficult decision, which is why it is important to enlist the help of a New Jersey real estate attorney.
Should I work with a bank or mortgage company?
If you can get your mortgage from a bank, always do so. Banks will give you a firm commitment, which means they will lend you a certain amount of money at a certain rate. Banks are more strict in their credit and down payment requirements, but they are reputable and responsible. While mortgage companies may be able to get you a mortgage at a cheaper rate, it most likely comes with a wide range of additional fees. In addition, you should be aware of mortgage company approvals, which are subject to a variety of conditions. By working with a mortgage company, you can also be rejected at the last minute before your closing.
You should ask your realtor and mortgage broker whether this mortgage is the cheapest, in regards fees and points. Also, by contacting our knowledgeable real estate attorneys, we can advise you on whether you should get your mortgage from a bank or mortgage company.
If you are considering refinancing a home in New Jersey, call us today at (201) 437-1600. We have decades of experience handling real estate issues and can help answer your many questions about refinancing. Do not hesitate, as the initial consultation we offer is completely free.
IF YOU HAVE ANY REAL ESTATE QUESTIONS, WE ALWAYS PROVIDE FREE TELEPHONE CONSULTATIONS. Call 201-437-1600 or click here for a free case evaluation.