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Home Loan Options
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Homebuying & Selling
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Tips & Advice
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What's YOUR Reason to Refinance?
Improving The Terms of Your Mortgage.
This type of refinance is designed to save money through one of the approaches listed below. Before finalizing your decision, it’s important to calculate the break-even point to determine if you’ll save enough money to justify refinancing. If you have any questions, your loan originator can help.
Securing a lower interest rate,
which typically reduces the total amount of interest paid over the course of your mortgage.
Shortening the term of the loan,
which can save on interest, as well as give you the peace of mind of being mortgage-free sooner than expected.
Lowering the payment.
This option may not save you money in the long run, but it could free up monthly cash flow for current needs.
Convert your ARM (Adjustable Rate Mortgage) to a fixed rate
to “lock in” a favorable interest rate. It helps remove the uncertainty of an adjustable rate.
Convert your fixed rate to an ARM.
If interest rates are trending lower, you may want to switch to an ARM to optimize market trends.
Tapping Into Your Home’s Equity.
A cash-out refinance allows you to access the available equity in your home. Equity is the amount already repaid on a mortgage, adjusted for any rise or fall in the home’s value (with any existing loans subtracted).
In this scenario, the new loan includes the remaining balance on your mortgage PLUS the amount of equity you’re extracting. Cash-out proceeds can be used for home improvements, education funds or other financial needs.
The Devil Is In The Details
Every homeowner’s situation is unique, so these thoughts are provided as educational information. This information does not constitute a one-size-fits-all recommendation. Be sure to consult with a mortgage professional to discuss your circumstances and goals before making a decision.
- By The Compass Hawaii Team, Jun 26, 2019
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