Choosing a Refinancing Option
The number of refinance options available can be overwhelming. Call us at (808) 935-0678 and we will work with you to qualify you for the perfect refinance loan for your situation. There are several questions to ask yourself while you consider the options.
Lowering Your Payments
Are you refinancing primarily to lower your rate and monthly payments? If so, getting a low, fixed-rate loan could be a wise option for you. Maybe you are now in a mortgage with a high, fixed interest rate, or a mortgage loan in which the interest rate varies - an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed-rate mortgage loan must remain at the same, low interest rate, unlike an ARM. This kind of loan is particularly a wise idea if you aren't planning a move within the next five years or so. On the other hand, if you can see yourself selling your home in the near future, an ARM mortgage with a low initial rate might be the ideal way to bring down your monthly payment.
Are you hoping to cash out some of your home equity with your refinance? It could be you want to update your kitchen, pay your child's college tuition bill, or take your family on a dream vacation. In this case, you need to get a loan for more than the remaining balance of your present mortgage.So you You'll be looking for a loan for more than the current balance on your present mortgage in that case. However, if your interest rate is high now and you've held it for quite a few years, you may be able to reach your goals without an increase in your mortgage payment.
Do you hold other debt, maybe with higher interest, that you want to consolidate? If you hold some higher interest debts (such as credit cards or vehicle loans), you may be able to pay that debt off with a loan with a lower rate through your refinance, if you have the home equity built up to make it work.
Building up Equity Faster
Are you wanting to fatten up your equity faster, and get your mortgage paid off sooner? Consider refinancing to a shorterterm loan, such as a 15-year mortgage. You will be paying less interest and growing your home equity faster, even though your monthly payments will generally be higher than you were paying. Conversely, if your existing longer term loan has a small remaining balance, and was closed a while ago, you may even be able to make the change without paying more each month. To help you figure out your options and the multiple benefits of refinancing, please call us at (808) 935-0678. We are here for you.
Want to know more about refinancing? Give us a call: (808) 935-0678.
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