Selecting a Refinancing Program

There aren't as many refinance loan programs as there are borrowers, but it seems like it at times! Call us at (808) 935-0678 and we can help you qualify for the best refinance program for your situation. What do you hope to achieve with refinancing? Keeping in mind the following will help you narrow your choices.

Lowering Your Payments

Are getting better payments and an improved rate your main reasons for refinancing? In that case, a good option might be a low fixed-rate loan. Maybe you are now in a mortgage loan with a high, fixed interest rate, or a loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even when interest rates rise, a fixed-rate mortgage will stay at the same, low interest rate, unlike an ARM. If you are not expecting to sell your home in the near future (about five years), a fixed-rate mortgage can particularly be a good loan option. However, an ARM with a low intitial payment could be a wiser way to lower your monthly payments if you expect to move in the next few years.

Refinancing to Cash Out

Is "cashing out" your primary purpose for refinancing? It could be you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are updating your kitchen. So you want to find a loan for more than the remaining balance of your present mortgage.So you'll You will want to find a loan for more than the balance remaining on your present mortgage loan in that case. You may not have an increase in your monthly payemnt, however, if you have had your current mortgage for a long time, and/or your interest rate is high.

Consolidating Your Debt

Perhaps you'd like to cash out a portion of the equity in your home (cash out) to put toward other debt. If you have built up some equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might help save you a chunk of cash each month.

Building up Equity Faster

Are you dreaming of paying your loan off sooner, while building up your home equity faster? You should consider refinancing to a short-term loan, often a 15-year mortgage loan. Even though your mortgage payments will probably be more, you will be paying less interest; so your home equity will build up faster. Conversely, if your existing longer term mortgage loan has a small balance remaining, and was closed a while ago, you may be able to make the switch without paying more each month. To help you determine your options and the many benefits in refinancing, please call us at (808) 935-0678. We would love to help you reach your goals!

Curious about refinancing? Give us a call: (808) 935-0678.

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