Refinancing: Which Program is for You?

When you are overwhelmed with so many options, it may seem as if there are even more refinance loan programs than borrowers! Contact us at (808) 935-0678 and we will work with you to qualify you for the perfect refinance program for your financial situation. What do you hope to achieve with your refinance loan? Considering in mind the information below will help you begin your decision process.

Reducing Your Monthly Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? If so, your best option could be a low fixed-rate loan. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loan programs that you may want to refinance. Even when interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. This is especially a wise option if you don't think you will move within the next 5 years or so. However, an ARM with a initial low payment may be a wiser way to lower your mortgage payments if you see yourself moving within the near future.

Cashing Out

Is your refinance goal primarily to "cash out" some home equity? It could be you need to pay for home improvements, pay your child's college tuition bill, or go on a an Alaskan cruise. Then you want to get a loan for more than the remaining balance of your existing mortgage.With this goal, you want to qualify for a loan program for a higher number than the balance remaining on your current mortgage loan. You may not increase your mortgage payemnt, though, if you've had your existing mortgage for a long time, and/or your interest rate is high.

Consolidating Your Debt

Maybe you'd like to pull out a portion of the equity (cash out) to use toward other debt. If you have the equity in your home for it, taking care of other high interest debt (like car loans, credit cards, student loans, or home equity loans) means you can save possibly hundreds of dollars per month.

Building up Equity More Quickly

Are you dreaming of paying off your loan more quickly, while building up your equity faster? In that case, you want to look into refinancing to a short term mortgage loan - like a fifteen-year mortgage program. Your payments will probably be higher than with a longer term mortgage, but in exchange, you will pay considerably less interest and can build up equity more quickly. Conversely, if your existing longer term mortgage loan has a small balance remaining, and was closed a number of years ago, you may be able to make the switch without paying more each month. To help you understand your options and the numerous benefits in refinancing, please contact us at (808) 935-0678. We are here for you.

Curious about refinancing? Call us: (808) 935-0678.

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