Which Refinancing Program is Best for You?

There are not as many loan programs as there are borrowers, but it seems like it sometimes! Call us at (808) 935-0678 and we will match you with the loan program that fits you best. What are your reasons for refinancing? Keeping in mind the information below will help you begin your decision process.

Lowering Your Payments

Are you refinancing primarily to lower your rate and monthly payments? If so, the best choice might be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Even if rates come up later, unlike with your ARM, when you get a mortgage with a fixed rate, you lock in that low interest rate for the term of your loan. If you aren't planning on moving in the near future (about five years), a fixed rate mortgage loan can especially be a wise loan option. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get reduced mortgage payments.

Refinancing to Cash Out

Is your refinance goal mainly to "cash out" some home equity? Your house needs updating; your daughter has been accepted to college and needs tuition money; or you have a special family vacation planned. Then you want to find a loan higher than the remaining balance of your present mortgage.In that case, you'll want However, if your mortgage rate is currently high and you've had it for quite a few years, you may be able to reach your goals without making your monthly payments increase.

Consolidating Your Debt

Maybe you'd like to cash out some equity in your home (cash out) to put toward other debt. If you have built up some equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a chunk of money every month.

Getting a Shorter Term Loan

Do you hope to build up equity quicker, and have your mortgage paid off faster? In that case, you'll want to look into refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and increasing your equity more quickly, although your monthly payments will usually be more than you were paying. Conversely, if your current longer term mortgage has a low remaining balance, and was closed a number of years ago, you could be able to make the change without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at (808) 935-0678. We would love to help you reach your goals!

Want to know more about refinancing your home? Call us at (808) 935-0678.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question