When Should I Refinance?

Refinancing could be a smart move if it helps you save money, lower monthly payments, or adjust your loan terms to fit life changes (like a new job or growing family). While saving 1-2% on your rate is often a good starting point, we’ll help you crunch the numbers to see what makes sense for your budget.

Example:
A $300,000loanat7.5$2,100/month
Same loan at 6.5% = ~$1,900/month\to \ast That’s$200 back in your pocket monthly!*

Not sure? Get a free refinance analysis.

What Are Mortgage Points?

Think of points like a “discount coupon” for your interest rate. Pay a little extra upfront (1 point = 1% of your loan amount), and you’ll get a lower rate over time.

Example:
On a $400,000loan,1point=$4,000 upfront → Might lower your rate by 0.25%.

Should I Pay Points to Lower My Rate?

Yes, if you plan to stay in your home long-term (5+ years). You’ll save more over time than the upfront cost.

Not sure? Ask us: “Will I break even before I sell or refinance?”

What’s APR?

APR (Annual Percentage Rate) shows the total cost of borrowing—including fees and interest. It’s higher than your basic rate but helps compare loans apples-to-apples.

Remember: Your monthly payment is based on the interest rate, not APR.

What Does “Locking My Rate” Mean?

Mortgage rates change daily. A rate lock (typically 30-60 days) freezes your rate so it can’t jump up before closing. Ask us about free locks!

What Documents Do I Need to Apply?

Gather these basics (we’ll guide you through the rest):

About You

• Pay stubs (last 30 days)

• Tax returns (last 2 years)

• Bank statements (last 3 months)

About the Home

• Purchase agreement (if buying)

• Current mortgage statement (if refinancing)

Download Our Checklist →

How Do Lenders Judge My Credit?

They look at your credit score (a number between 300-850) and history. Higher scores = better rates.

Pro Tip: Check your credit report for free at AnnualCreditReport.com.

How Can I Improve My Credit Score?

• Pay bills on time (set reminders!).

• Keep credit card balances below 30% of your limit.

• Avoid opening new accounts before applying for a mortgage.

What’s a Home Appraisal?

An appraisal confirms your home’s value. It protects you and the lender—making sure you’re not overpaying.

What Is PMI?

PMI (Private Mortgage Insurance) is required if your down payment is under 20%. It adds to your monthly cost but lets you buy sooner.

Want to avoid PMI? Ask us about 80-10-10 loans or NJ down payment assistance programs.

What Is 80-10-10 Financing?

A PMI-free solution for buyers who can put 10% down:

• 80% first mortgage

• 10% second mortgage

• 10% cash down payment

Only 5% down? We offer 80-15-5 options too!

What Happens at Closing?

This is the final step where you sign paperwork and get the keys! We’ll:

1. Review all costs (no surprises).

2. Do a final “walk-through” to ensure the home is ready.

3. Celebrate with you! 🎉

Still Have Questions?
Our NJ-based experts are here to help — 
Schedule a Chat or call (848) 800-2040.