Selecting a Refinancing Program
When you are overwhelmed with all the choices, it may seem as if there are even more refinance programs than applicants! Call us at (808) 935-0678 and we will work with you to qualify you for the right refinance loan to fit your financial situation. What do you hope to achieve with refinancing? Considering in mind the following will help you begin your decision process.
Making Your Payments Lower
Are your refinance goals to lower your rate and consequently your mortgage payments? Then a low, fixed rate loan may be the right option for you. An ARM (Adjustable Rate Mortgage) or a high fixed rate mortgage are loans that you may want to refinance. Unlike the ARM, your low fixed-rate mortgage stays at a certain low rate for the life of the mortgage loan, even as interest rates rise. If you are expecting to live in your home for at least five more years, a fixed rate loan may be an especially good fit for you. However, an ARM with a low intitial payment could be a wiser way to lower your monthly payments if you plan on moving in the next few years.
Cashing Out
Are you refinancing primarily to "cash out" some home equity? Perhaps you're going on a much needed vacation; you need to pay college tuition for your child; or you are updating your kitchen. With this in mind, you need to apply for a loan for more than the remaining balance on your existing mortgage.So you'll need If you've had your current mortgage for a long time and/or have a mortgage with a high interest rate, you may be able to do this without increasing your monthly payment.
Debt Consolidation
Do you want to cash out some equity to consolidate other debt? Good plan! If you have the home equity for it, taking care of other high interest debt (like credit cards, home equity loans, or car loans) means you may be able to save several hundred dollars monthly.
Building up Equity More Quickly
Do you need to build up home equity quicker, and have your mortgage paid off faster? If this is your wish, the refinance loan can change you to a mortgage loan program with a shorter term, like a 15 year loan. You will be paying less interest and growing your equity faster, although your payments will generally be bigger than you have been paying. Conversely, if your existing longer term mortgage has a small remaining balance, and was closed a while ago, you might be able to make the change without paying more each month. To help you figure out your options and the multiple benefits in refinancing, please contact us at (808) 935-0678. We would love to help you reach your goals!
Want to know more about refinancing your home? Call us at (808) 935-0678.