Refinancing: Which Program is for You?

When you are overwhelmed with all the options, it may seem as if there are even more loan programs than borrowers! We can guide you to choose the refinance loan program that will fit your needs the best. Contact us at (808) 935-0678 to get things started. What are your goals for refinancing? Keeping in mind the following will help you begin your decision process.

Reducing Your Monthly Payments

Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan might be a wise choice for you. Maybe you now hold a higher rate fixed rate mortgage, or perhaps you have an ARM — adjustable rate mortgage — with which the interest rate can vary. Even if rates rise later, unlike with your ARM, when you get a fixed-rate mortgage, you set that low rate for the life of your mortgage. A fixed-rate mortgage can be especially a wise idea if you don't think you'll be selling your home within the next five years or so. But if you do plan to sell your home more quickly, you should consider an ARM with a low initial rate to get reduced payments.

Getting Out some Cash

Is your refinance goal mainly to pull out some equity for an infusion of cash? Your house needs updating; your daughter has gone to college and needs tuition; or you are taking your family on a cruise. With this in mind, you'll want to apply for a loan for more than the balance remaining of your existing mortgage.With this goal, you'll want If you've had your current mortgage loan for quite a while and/or have a loan with a high interest rate, you may be able to do this without increasing your monthly payment.

Consolidating Your Debt

Perhaps you'd like to pull out some of the equity (cash out) to use toward other debt. If you have the home equity for it, paying off other debt with higher interest than the rate on your mortgage (like home equity loans, student loans, or credit cards) means you can possible save hundreds of dollars in your monthly budget.

Paying it off Sooner

Do you want to build up equity more quickly, and pay off your mortgage more quickly? Then, you need to look into refinancing to a short term mortgage - for example, a fifteen-year loan. You will be paying less interest and growing your home equity more quickly, even though your monthly payments will generally be higher than they were. But, you could be able to switch without much increase in your monthly mortgage payment if your longer term mortgage was closed a while ago, and the balance remaining is small. You could even pay less! To help you figure out your options and the many benefits in refinancing, please contact us at (808) 935-0678. We can help you reach your goals!

Curious about refinancing your home? Call us at (808) 935-0678.

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