Best Refinance Lenders in New Jersey • Benzinga

If you can no longer afford your monthly mortgage payment or need cash to cover an unexpected expense, a refinance might be the right option for you. Use our guide to refinancing in New Jersey to learn more about the best places to refinance a mortgage loan.

Quick Look: Best Refinance Lenders in New Jersey

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Best Refinance Lenders in New Jersey 

Mortgage lenders offer a number of refinancing options in New Jersey — from the Quicken Loans® streamlined Rocket Mortgage® platform to affordable VA refinances from Veterans United. 

If you don’t know where to start, check out a few of our favorite lenders below.

1. Best for Online Mortgages: Rocket Mortgage

Rocket Mortgage is one of the best mortgage lenders on the market, making it easy to apply for a home loan entirely online. Its streamlined preapproval process and quick access to customer service set it apart from other online lenders. Rocket Mortgage offers a large variety of mortgages and is backed by the largest mortgage lender, Quicken Loans. Whether you need help or know exactly what you’re looking for, Rocket Mortgage matches you with the right mortgage type and helps you quickly complete your online application.

Why We Love It: Rocket Mortgage stands out as one of the best refinance companies due to its user-friendly online platform, quick approval process, and competitive rates. It also has a 95% customer satisfaction rating and over $1 trillion in loan originations.

2. Best for Self-Employed Borrowers: CrossCountry Mortgage

CrossCountry Mortgage offers standard products like conventional loans, VA loans, Jumbo loans and FHA loans. It also has more specialized products like bank statement loans, asset qualifier mortgages and no doc investment property loans. If you’ve had a hard time finding a mortgage due to erratic income, being retired or buying an investment property, CrossCountry Mortgage is worth a look.

Why We Love It: We love CrossCountry Mortgage because of how it prioritizes customer satisfaction and work closely with clients to ensure a smooth and efficient refinance process, making them a top choice for those looking to refinance their mortgage.

2. Best for Military Members: Veterans United

Veterans United focuses on helping veterans and current service members find the right mortgage for their needs. It’s licensed in all 50 states and the District of Columbia and is the top VA lender in the country. If you’re currently serving or if you’re a veteran, Veterans United is worth considering due to its outstanding customer service and range of mortgage options.

Why We Love It: Veterans United is focused on providing refinancing options tailored specifically for veterans and active duty service members. With an impressive track record of helping over 500,000 military families achieve their homeownership goals, Veterans United offers competitive rates and exceptional customer service.

Refinance Process

Refinancing your loan might seem intimidating, but a bit of education can make the process simple. Here are the basic steps you’ll take to refinance your loan.

1. Choose Your Refinance Type

Before you apply to refinance a mortgage, determine your goals. If your goal is to lower your monthly payment, you may want to refinance to a longer term or a lower interest rate. If you have high interest debt, you may want to take a cash-out refinance to access a portion of your equity in cash. Familiarize yourself with your current equity, monthly payment and principal balance and decide what you want out of your refinance.

2. Select a Lender to Service Your Refinance

Each lender offers different terms, interest rates and other loan options. The best mortgage company for you will vary depending on your needs. Compare a few lenders and choose based on the best rates and terms for the type of loan you need.

3. Apply

Apply for your refinance using your lender’s preferred method. Your lender will likely ask you for bank statements, W-2 forms and pay stubs to prove your income. If you’re self-employed, your lender might also ask you for your full tax return.

4. Lock in Your Rate

After you apply for your refinance, you’ll receive a decision in 3 days or fewer. The best refinance mortgage companies will allow you to lock your rate for 15 to 30 days. If you’re happy with the interest rate when you apply, it’s a good idea to lock in your rate.

5. Get an Appraisal

In most circumstances, your lender will require that you get a new appraisal when you apply for a refinance. Your lender will assist you in scheduling your appraisal.

6. Review your Closing Disclosure

Once your lender finishes underwriting your loan and your appraisal closes, they’ll send you a Closing Disclosure with the final terms of your loan. Review your Disclosure and acknowledge it with your lender to keep your refinance on schedule.

7. Attend a Closing Meeting

The final step in the refinancing process is closing. At your closing meeting, you’ll pay your closing costs if you have any and sign off on your new loan.

Most refinances take between 30 and 45 days to close. Your loan’s closing time may vary depending on the lender you choose and where you live. 

When Should You Refinance in New Jersey?

There are plenty of reasons when you might want to refinance your mortgage loan. Let’s take a look at some of the benefits you can take advantage of when you refinance.

Take on a Lower Monthly Payment

If you can no longer afford to make your monthly mortgage payments each month, consider refinancing to a longer loan term. When you increase your loan term, you give yourself more months to pay off what you owe and decrease your monthly mortgage payment.

Change Your Loan’s Interest Rate

When you refinance your mortgage, you take on an interest rate that’s in line with current market rates. If rates are lower now than when you got your loan, you can save money each month by refinancing to a lower rate.

Get Rid of FHA Insurance

If you have an FHA loan, you must make monthly FHA insurance payments. You cannot cancel your FHA insurance, but you can refinance your FHA loan into a conventional loan if you have at least 20% equity in your property. This removes the FHA insurance requirement.

Many homeowners also use cash-out refinances to take away a portion of their home’s equity to consolidate debt. 

When Should You Not Refinance?

Refinancing isn’t right for everyone. Let’s take a look at some instances when refinancing might not give you the benefits you need.

Interest Rates are Higher Now

If interest rates are higher now than when you got your loan, you might end up paying thousands of dollars more by the time you fully own your home.

You Plan on Selling Your Home in the Next Few Years

If you sell your home shortly after you refinance, you might end up paying more in closing costs than you saved with your refinance.

You Can’t Afford Your Closing Costs

Some lenders offer “no closing cost” refinances that don’t require you to pay anything in closing costs when you sign on your loan. However, these loans aren’t actually free of closing costs. Your lender adds your closing costs onto the principal balance of your loan and increases your interest rate. Don’t be fooled by the name — these loans often end up costing more than the balance of your closing costs. Wait until you can afford to pay upfront before you refinance. 

Bad Credit Refinance

If you have bad credit, you might have a harder time getting the refinance you need. However, there are a few strategies you can use to refinance if you’re still working on building your credit score.

VA IRRRL

If you have a VA loan, you may want to refinance your rate or term with a VA interest rate reduction refinance loan (VA IRRRL). A VA IRRRL may allow you to refinance your mortgage loan without a new appraisal or credit check. To qualify for a VA IRRRL, you must already have a VA loan and have made your last 6 monthly payments on time. You must also have had your loan for at least 270 days before you refinance.

FHA Streamline

The FHA streamline refinance is similar to the VA IRRRL. It allows you to refinance an existing FHA loan without a credit check or new appraisal. Like a VA IRRRL, you can only qualify for an FHA streamline if you already have an FHA loan, have made your last 12 mortgage payments on time and are only refinancing to get a lower interest rate or monthly payment.

Add a Non-Occupying Co-Client

A non-occupying co-client is someone who doesn’t live in your home but allows your lender to use their credit when you apply for your refinance. If you fail to make payments on your loan, your lender can pursue your non-occupying co-client for your loan balance. If you know someone who has excellent credit, adding them as a co-client on your loan can increase your chances of approval.  Just be 100% sure you can make your payments before you have them sign on.

You can also wait to refinance until you have a chance to boost your credit score. Taking a few months to make your loan payments on time, limit your credit usage and dispute any inaccuracies on your credit report can mean a world of difference when it comes to your score — and your refinancing options.  

Time to Refinance

Should you refinance your mortgage loan right now? The answer depends on your unique loan and what you want to get out of your refinance. If interest rates are lower now or you urgently need to change your monthly payment, refinancing can be a good option for you. If you’re still building up your credit and rates are higher than average, you may want to hold off on refinancing for now. Contact our recommended lenders to learn more and start your refinance today.

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