When you refinance, you receive a completely new mortgage with new terms, interest rates and monthly payments—the new loan completely replaces your current mortgage. If you have a high-interest rate mortgage or maybe your payments are becoming unmanageable, refinancing may be able to lower your monthly payments, shorten the term of your loan.

Whatever the reason, there are basically two types of refinancing options available—the federal government's Home Affordable Refinance Program (HARP), which is designed specifically to help homeowners with little or no equity refinance, or a traditional Refinance. Find out if you're eligible and which option may be right for you.

Before looking into refinancing as an option, there are a couple of things you should consider. Your mortgage payments need to be current before applying. The application process is similar to when you applied for a mortgage to finance the purchase of your home, so start pulling your financing information together right away. Your mortgage company will work with you through every step, and will help determine the best mortgage option for your specific needs.

Home Affordable Refinance Program (HARP)

What is HARP?

HARP is unique—it's the only refinance program that enables eligible borrowers with little to no equity in their homes to take advantage of low interest rates and other refinancing benefits. There have been several changes to HARP, but the primary enhancement removed the limit on the amount that homeowners could be “underwater” (owe more on their mortgage than their home is worth). With that change, many homeowners who were not eligible will now qualify. Program ends December 31, 2016.
“Whether you're looking to refinance a property you live in, or an investment property, find out if you qualify for this amazing program.”
– Roger of East Orange, NJ, saved $763 per month

HARP may be an option if:

  • You have had a good payment history for the past 12 months. That means having no late payments in the last 6 months and no more than one 30-day late payment from 6 to 12 months ago.
  • Your home is your primary residence, 2nd home or investment property.
  • Your home value has decreased. You have limited equity or your first mortgage exceeds the current market value of the home (i.e., your loan-to-value ratio must be > 80% to be eligible).
  • Your loan is owned or guaranteed by Fannie Mae or Freddie Mac. Check the Fannie Mae Loan Lookup tool.
  • Your loan was closed on or before May 31, 2009 (this date can be found using the loan lookup results).

Traditional Refinance

If you simply want to make your payments more comfortable and your home value is steady or has increased, you may be able to refinance your mortgage. You'll go through an application, approval and closing process, similar to when you got your original mortgage. Your mortgage company will work with you through every step, and will help determine the best mortgage option for your specific needs.
“I'm current on my mortgage, but I would like to lower my payment.”
Contact us at (973)-378-3030 and a dedicated agent will explain more about refinancing and submit the necessary request forms. We want to help you stay in your home, if possible.