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Real Estate - Refinancing a Home

When you choose to refinance a home in New Jersey, it is important to have a knowledgeable attorney on your side. We can explain the difference between refinancing and a mortgage modification. In addition, our attorneys can determine which would work best in your situation.

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.

To set up a free consultation about selling a house, please call us at (201) 380-1050.


Hwang Law Firm LLC
301 Rt 17 N, Suite 800
​Rutherford, NJ 07070

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Call 201.380.1050 for a Free Consultation !

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  • Home
  • Services
    • Real Estate >
      • Buying a Home
      • Selling a Home
      • Refinancing a Home
      • Attorney Review Process
    • Secured Lending
    • Landlord-Tenant >
      • Residential Lease
      • Commercial Lease
      • Landlord Rights
      • Tenant Rights
    • Bankruptcy >
      • Bankruptcy FAQ
      • Debt Relief
      • Chapter 7
      • Chapter 13
      • Ch 7 vs. Ch 13
      • BK Exemptions
    • Business Law >
      • Business Formation
      • Business Contracts
      • Asset Transaction
      • Business Litigation
    • Immigration >
      • Family Based Immigration
      • Green Card
      • Naturalization
  • About
  • FAQ
    • Stages of a Transaction
    • Closing Costs
    • Bankruptcy FAQ
  • Contact