Selecting a Refinancing Loan

There are not as many refinance loan options as there are applicants, but at times it feels like it! Contact us at (808) 264-3715 and we can work with you to qualify you for the right loan program to fit your financial situation. What do you hope to achieve with your refinance loan? Keeping in mind the following will help you begin your decision process.

Making Your Payments Lower

Are you refinancing primarily to lower your rate and monthly payments? If so, a good choice may be a low fixed-rate loan. Perhaps you are presently in a loan with a high, fixed interest rate, or a mortgage in 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 the mortgage, even when interest rates rise. If you expect to stay in your home for at least five more years, a fixed rate mortgage may be a particularly good option for you. But if you do expect to move more quickly, you should consider an ARM with a low initial rate to get lower mortgage payments.

Refinancing to Cash Out

Is your refinance goal mainly to "cash out" some home equity? Perhaps you're planning a special vacation; you have to pay tuition for your college-bound child; or you are updating your kitchen. In this case, you will need to qualify for a loan above the balance remaining on your existing mortgage loan.With this goal, you will You will be looking for a loan for a higher amount than the balance remaining of your current mortgage loan in that case. If you've had your existing mortgage for a number of years and/or have a loan with high interest, you may be able to do this without increasing your monthly payment.

Consolidating Your Debt

Do you want to pull out some of your home equity to consolidate additional debt? Great plan! If you have enough home equity, taking care of other debt with higher interest rates that your mortgage loan (credit cards or home equity loans, for example) might help save you a chunk of money each month.

Building up Equity Faster

Do you hope to build up home equity quicker, and have your mortgage paid off sooner? In that case, you'll need to find out about refinancing to a short term mortgage loan - for example, a fifteen-year loan. You will be paying less interest and increasing your equity faster, although your payments will likely be bigger than they were. But, you may be able to make the change without a higher monthly payment if your longer term mortgage loan was closed a while back, and the remaining balance is somewhat low. You could even pay less! To help you determine your options and the multiple benefits in refinancing, please contact us at (808) 264-3715. We are here for you.