Selecting a Refinancing Option

Although it may seem like it sometimes, there aren't as many loan options as there are applicants! Call us at (808) 935-0678 and we'll work with you to qualify you for the perfect refinance loan to fit your financial needs. There are some general things to keep in mind while you review the options.

Lowering Your Payments

Are getting reduced mortgage payments and an improved rate your main refinance goals? If so, getting a low, fixed-rate loan could be a good choice for you. Perhaps you are now in a mortgage loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed rate mortgage will remain at the same, low interest rate, unlike an ARM. If you aren't expecting to sell your home in the near future (about five years), a fixed rate mortgage loan can especially be a great choice. On the other hand, if you do see yourself moving in the near future, an adjustable rate mortgage with a small initial rate may be the ideal way to lower your monthly payment.

Getting Out some Cash

Is your refinance goal mainly to pull out some of your equity for an infusion of cash? Perhaps you need to pay for home improvements, pay your child's college tuition bill, or take a cruise. With this in mind, you will want to get a loan for more than the remaining balance on your current mortgage.In this case, you will want You may not have an increase in your monthly payemnt, however, if you've had your existing mortgage loan for a long time, and/or your loan interest rate is high.

Consolidating Debt

Perhaps you hope to pull out some home equity (cash out) to put toward other debt. If you own some debt with steep interest (like credit cards or vehicle loans), you may be able to take care of that debt with a loan with a lower rate through your refinance, if you have the equity built up to make it work.

Building up Equity More Quickly

Are you wanting to fatten up your equity faster, and pay your mortgage off more quickly? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. The mortgage payments will probably be higher than they were with the long-term loan, but in exchange, that you will pay quite a bit less interest and can build up equity more quickly. But, you may be able to switch without much increase in your monthly mortgage payment if your longer term mortgage loan was closed a while back, and the remaining balance is somewhat low. You may even pay less! To help you understand your options and the many benefits of refinancing, please call us at (808) 935-0678. We are here for you.

Curious about refinancing your home? Give us a call at (808) 935-0678.

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