Which Refinancing Program is Right for You?
When you are overwhelmed with so many choices, it may seem like there are even more refinance loan programs than borrowers! We can help you locate the refinance loan program that can fit your needs the best. Contact us at (808) 935-0678 to get started. There are some general things to have in mind while you look at your choices.
Reducing Your Monthly Payments
Are you refinancing primarily to lower your rate and monthly payments? Then a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Even when rates get higher later, unlike with your ARM, when you qualify for a mortgage with a fixed rate, you set the low interest rate for the term of your mortgage. A fixed-rate mortgage can be especially a wise option if you don't plan to sell your home within the next five years or so. But if you do plan to move more quickly, you should consider an ARM with a low initial rate in order to achieve lower monthly payments.
Is "cashing out" your main purpose for your refinance? Maybe you're dreaming of a cruise; you have to pay tuition for your college-bound child; or you are updating your kitchen. So you'll need to get a loan for more than the balance remaining of your existing mortgage loan.In this case, you will want However, if your mortgage rate is high now and you've held it for quite a few years, you may be able to reach your goals without a rise in your mortgage payment.
Maybe you hope to cash out some home equity (cash out) to put toward other debt. If you have the equity in your home for it, paying off other high interest debt (such as credit cards, home equity loans, or car loans) means you can save possibly hundreds of dollars in your monthly budget.
Paying it off Sooner
Are you wanting to fatten your home equity faster, and get your mortgage paid off more quickly? In that case, you need to look into refinancing to a short term mortgage - like a fifteen-year loan. The payments will likely be more than they were with a longer term mortgage, but in exchange, that you will pay substantially less interest and will build up equity more quickly. However, if you've held your existing thirty year mortgage loan for a long time and the remaining balance is rather low, you might be able to do this without increasing your monthly mortgage payment — you could even be able to save! To help you figure out your options and the numerous benefits of refinancing, please contact us at (808) 935-0678. We are here to help you reach your goals!
Want to know more about refinancing your home? Give us a call at (808) 935-0678.
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