Maplewood, Essex County

Paying off other debts with home equity: a guide for Maplewood, NJ owners

For Maplewood owners weighing whether to clear credit cards, student loans or other debts with the equity in their home: the three ways to do it, what each one changes, and why the total cost matters more than the monthly payment. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch, in Monmouth County, and we lend across New Jersey.

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NMLS #103098
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Fidelity Residential · NMLS #103098 · Equal Housing Lender

Maplewood housing

Older houses, most with a mortgage

In the American Community Survey’s 2020 to 2024 estimates, Maplewood has about 25,600 residents and about 9,100 homes.

About 4,900 of roughly 6,500 owner-occupied homes, an estimated 75.3 percent, have a mortgage, and an estimated 55.5 percent of all homes date from 1939 or earlier. The median value of an owner-occupied home in Maplewood is estimated at about $720,700.

Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our office is at 121 NJ-36, Suite 230, West Long Branch, in Monmouth County; we do not have an office in Maplewood, and we lend across New Jersey.

Homes and households

Two-family houses: an estimated 14.7 percent of homes sit in a two-unit building
Owned, rather than rented: an estimated 74.9 percent of occupied homes
Children at home: an estimated 47.9 percent of households include someone under 18
Public transportation to work: an estimated 19.8 percent of workers
Age: a median of an estimated 38.1 years

Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.

Three ways

Three ways to turn equity into a payoff

Each one is secured by your home, so each one deserves a careful look before the debts move onto it.

Cash-out refinance

One new first mortgage

Replaces your mortgage with a new, larger one. At closing it pays off the old mortgage and the debts you choose to clear, and the rest comes to you.

Cash-out refinances

Home equity loan

A second loan with a set payment

A fixed-rate second mortgage behind the one you keep, paid out in one sum. A known amount, such as debts to combine, fits a set payment.

Home equity loans

Line of credit

Draw as you go

A home equity line lets you draw what you need, at a rate that follows a published index, so the payment can move. It suits costs that come in stages more than a one-time payoff.

Home equity lines

Weighing a line against a refinance? See a home equity line and a cash-out refinance compared side by side.

The whole cost

Compare the total cost, not just the payment

Moving card or loan balances onto your home can lower the monthly payment, because the debts move into a longer loan. That is exactly why the total cost of each choice deserves a look, not just the monthly figure.

Your home secures it. Debts that were owed on cards or other loans become part of a loan on your house.

Keep the first mortgage, or replace it. A cash-out refinance replaces your current mortgage; a home equity loan or line leaves it in place. If you want to keep the mortgage you have, a second loan does that.

A cooling-off period. When the home is your main residence, federal law gives you a right to cancel, and the money is not released until it has run.

What the lender checks

Value: an appraisal, and a limit on the share of value you can borrow
Credit: your report is pulled, with the debts you plan to clear
Income: pay stubs and tax returns, or other papers in some programs
The debts: a statement for each one you want paid off
The home: your latest mortgage statement

After the payoff

Keeping the balances from coming back

A payoff clears the balances; it does not change what built them. A plan for the months after closing matters as much as the loan.

Order matters. Higher-interest debt such as credit cards is usually worth clearing before you send extra money to the mortgage, and a financial adviser can help you weigh it.

Leave room. Keep a cushion of savings after closing, so the next surprise does not land on a card.

Plan on the new payment. The new payment is counted with your other debts when the loan is underwritten, and it is the figure you live with each month afterwards.

Questions

Questions from Maplewood homeowners

Do you lend in Maplewood?

Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License, and we lend across New Jersey. You can check the licence on NMLS Consumer Access (opens in a new tab).

Do you have an office in Maplewood?

No. Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, in Monmouth County, and we lend across New Jersey. Call 732-686-9999 to talk with a licensed loan officer.

Can I use a cash-out refinance to pay off credit cards?

Yes. Credit cards, student loans and other debts can be paid off at closing, leaving one loan to pay. Compare the total cost, not just the monthly payment.

Should I use a home equity loan or a line?

A known amount, such as debts to combine, fits the set payment of a home equity loan. A line suits costs that come in stages.

Does a cash-out refinance replace my mortgage?

Yes. It is a new mortgage that pays off the one you have. A home equity loan or line leaves your first mortgage in place.

When are the debts paid?

At closing, from the new loan. When the home is your main residence, the money goes out once the federal right to cancel has run.

Talk with a loan officer near you

Get a quote online, or call us and talk it through with a licensed loan officer.