Which Refinancing Program is Best for You?

When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than applicants! We can guide you to select the loan program that will fit your financial situation the best. Call us at (808) 935-0678 to get things started. There are some general questions to ask yourself as you look at the options.

Lowering Your Payments

Are achieving lower monthly payments and an improved rate your main reasons for refinancing? In that case, applying for a low, fixed-rate loan may be a wise option for you. Maybe you now hold a fixed-rate mortgage with a higher rate, or maybe you hold an ARM — adjustable rate mortgage — where the interest rate varies. Different that the ARM, your low fixed rate mortgage stays at a certain low rate for the life of the mortgage, even if interest rates rise. If you aren't expecting to move in the near future (about five years), a fixed rate mortgage loan can especially be a great option. But if you do expect to sell your home more quickly, you should consider an ARM with a low initial rate in order to achieve lower mortgage payments.

Getting Out some Cash

Are you refinancing mainly to "cash out" some home equity? It could be you're going on a much needed vacation; you have to pay college tuition for your child; or you are planning some home improvements. So you want to look for a loan higher than the remaining balance on your present mortgage loan.With this goal, you will need You might not increase your mortgage payemnt, however, if you have had your existing loan for a number of years, and/or your loan interest rate is high.

Debt Consolidation

Do you have other debt, perhaps with a high interest rate, that you need to consolidate? If you have the home equity to make it work, taking care of 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 several hundred dollars a month.

Building up Equity Faster

Do you hope to build up home equity more quickly, and pay off your mortgage more quickly? Then, you'll want to look into refinancing to a short term mortgage - like a fifteen-year loan. Even though your monthly payments will usually be more, you can be paying less interest; so your equity amount will build up faster. On the other hand, if your current long-term mortgage has a small balance remaining, and was closed a while ago, you might be able to make the move without paying more each month. To help you understand your options and the multiple benefits in refinancing, please call us at (808) 935-0678. We are here for you.

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

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