Choosing a Refinancing Option

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When you are overwhelmed with so many options, it may seem like there are even more refinance loan programs than borrowers! We can guide you to locate the refinance loan program that can fit your financial situation the best. Call us at (808) 935-0678 to begin the process. There are several things to keep in mind as 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 the right loan program for you. Maybe you are now in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Unlike the ARM, your low fixed rate mortgage will stay at a certain low rate for the term of your mortgage loan, even if interest rates rise. If you aren't planning a move in the near future (about 5 years), a fixed-rate mortgage can particularly be a wise option. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower monthly payments. By refinancing your current mortgage, your total finance charges could be more over the life of the loan.

Getting Out Some Cash

Are you refinancing primarily to pull out some of your home equity for an infusion of cash? It could be you're going on a much needed vacation; you need to pay tuition for your college-bound child; or you are updating your kitchen. So you need to find a loan above the balance remaining on your present mortgage.In that case, you will want However, if your interest rate is currently high and you've held it for a long time, you may be able to accomplish your goals without making your monthly payments increase.

Debt Consolidation

Do you hold other debt, maybe with high interest, that you want to consolidate? If you have enough home equity, taking care of other debt with rates higher than your mortgage (credit cards or home equity loans, for example) may be able to save you a lot of cash every month.

Paying it off Faster

Do you need to build up home equity more quickly, and pay off your mortgage sooner? Consider refinancing with a shorterterm loan, often a 15-year mortgage loan. The mortgage payments will probably be higher than they were with a long-term mortgage loan, but the pay-off is: you will pay substantially less interest and can build up equity more quickly. But, you could be able to switch without a higher monthly payment if your longer term loan was closed a while ago, and the remaining balance is somewhat low. You could even pay less! To help you figure out your options and the multiple benefits of refinancing, please call us at (808) 935-0678. We can help you reach your goals!