NEW JERSEY COPS ■ MARCH 2014
FINANCE DEPARTMENT
79
Are you ready to refinance?
Steve, a North Jersey first responder, responds
to questions about his effort to refinance his mortgage through PFRS.
How long have you been waiting to refinance
with the PFRS?
It’s been a few years. I never expected the program to reopen but I’m always checking the state
PBA’s website and also NJ Lawman.com for any
updates. I saw the bulletin come out and I called
my favorite mortgage consultants right away to
get started.
What was your goal with the refinance?
I wanted to get a lower monthly payment. My plan is to take the
monthly savings I have and put it into a college savings plan for
my son.
Are there any concerns you have with the refinance?
Yes, I do need to make sure my house appraises to where I have
enough equity in the home to do the refinance. I did my homework first, though, and looked online on Trulia.com and also called
a local realtor. She was able to pull some recent comparables of
homes that sold and based on this data, it appears I should be ok.
Were you reluctant to do another 30-year term and lose the time
you’ve already paid into the loan?
No, I wasn’t because I always make it a practice to send in at
least one extra payment per year which will shave seven years off
of the term of my loan. If I do that, I will actually end
up being ahead of the game. You have to have some
self-discipline to do it that way so for other people
locking into doing a shorter term like a 20-year may be
the better approach.
How did you feel the PFRS rate compared to regular
conventional rates for the refinance?
I was watching rates and they have been hovering
around 4.25- 4.5-percent depending on the day. With
the PFRS loan program at 3.68 percent, it was an
absolute no brainer. Even considering the $30 monthly service charge, it still was much cheaper for me
monthly.
What was your response when you found out you were able to
get the 3.68-percent rate for your refinance?
I remember the last time this program was open for refinancing. The rate was so below market in the 3’s that the money was
gone in a matter of days. Like me, so many of my co-workers were
trying to get locked in but they weren’t quick enough and they
missed out on the program before the money was exhausted. This
time I wasn’t taking any chances. As soon as I saw the bulletin, I
called and took care of the application. d
The team of Sharon Press and Andrea Pasquin was named one
of the top 90 mortgage professionals in New Jersey by NJ Monthly. They can be reached at 866-612-1864.