Free Mortgage Refinancing In New Jersey

Written by on January 31, 2012 in New Jersey Mortgage Refinance - No comments
With Rates dropping, free mortgage refinancing is becoming the leading product for the best New Jersey mortgages.

As the market continues to provide the best refinance rates in New Jersey and beyond, lenders and borrowers are agreeing that more often than not, free refinances are the premier program.  Borrowers who refinanced as recently as last year are going back to the table because lenders are offering to not only reduce their rate, but to also pay all of the costs associated with doing the refinance. 

Often borrowers are seeing half point rate reductions or better, but if the transaction has no cost, at what point does it make sense to refinance?  The answer isn’t cut and dry, but if there is no financial cost, then why would a borrower not refinance?  Usually, it’s one of two things; either they aren’t aware the program exists or their current lender isn’t offering it, or they don’t want to deal with the “hassle”.  But that can be a costly mistake.  The savings from just a .25% rate reduction on $250,000 is over $10,000!  So, even a borrower who is at 4% and can refinance to 3.75% should be taking advantage of this opportunity while they can.

Home owners considering this type of refinance should be aware of a few things:

If you escrow your taxes and insurance, you will need to either bring the lenders escrow reserve requirement to closing, or be prepared to increase your loan amount to cover it.  Be mindful that you will receive a refund from your existing lender for the escrow reserve that they are holding.

You will most likely need a new appraisal.  There are a few programs that don’t require this, but be sure to ask your loan consultant for this important detail.

Your loan consultant may allow you to skip over a payment, be aware that there is no free money!  Your loan balance will be higher on your new loan if you choose to do this.

With the best interest rates for New Jersey mortgages available, you should look into the thousands in savings that you may be eligible for.

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