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 We understand that your house is the largest asset you
may ever own. Likewise, your mortgage payment may be the
largest expense you'll have in your monthly budget. With
the knowledge of constant fluctuations in interest
rates, property values, and other market conditions,
Charter Mortgage, Ltd. Refinancing experts are able to
put mortgage refinancing to work for you.
Mortgage Refinancing
Refinancing
is the process used if you should apply for a secured
loan in order to pay off another different loan secured
against the same property.
Typically refinancing is done to lower your interest
rate. Refinancing can lower your monthly payments
considerably, shorten the life of your loan, or permit
you to obtain cash against the equity of your property.
Benefits of Home Refinancing
Lower Interest, Lower Payments
- When you purchased your
dream home or even if you refinanced previously, the
market conditions at that time dictated your interest
rates. Even though certain other elements (your credit
rating and the amount of the down payment that you were
able to afford) influenced your interest rate, the
single most important factor was the prevailing interest
rates at that moment. However, interest rates constantly
fluctuate. By refinancing your mortgage when interest
rates are lower, you can exchange a higher interest rate
for a lower one, which, in turn, will lower your monthly
payment.
Shorten the Length of Your
Mortgage - Another benefit of
mortgage refinancing is that you can shorten the term of
your mortgage. By doing so, it can save you thousands of
dollars of interest. Also, if the refinance rate is
lower, and you maintain the same monthly payment, you
will build up equity in your home much more quickly
because more of your payment will be going towards the
principal.
 Exchange an Adjustable Rate for a Fixed Rate -
When interest rates are low, the majority of homeowners
typically choose an adjustable rate mortgage (ARM)
program. However, as interest rates begin to increase,
that adjustable rate may not really be the best
solution. The best scenarios for an ARM programs would
be if your current financial situation is not that
secure, and/or you are planning to sell your property in
a few years. By refinancing your loan at a fixed
interest rate, you will have more security knowing that
your monthly payment will remain steady regardless of
the market conditions.
Access
to Extra Cash - Another way to put more money in
your pocket is to tap into the equity you have in your
home and do a "cash-out" refinancing. In this scenario,
you can refinance for an amount higher than your current
principal balance and take the extra funds as cash. This
provides money for remodeling your home, paying off high
interest-rate bills, investing, or sending your kids to
college.
Remove Private Mortgage Insurance - If your
loan-to-value (LTV) was more than 80 percent when you
purchased your home, you may have been required to
purchase Private Mortgage Insurance (PMI). However, the
property value, especially in Hawaii, has appreciated
drastically in the last few years. Since you made your
purchase, you have steadily paid down your mortgage, and
the equity available on your property may now be more
than 20 percent. If you refinance your loan now, you
will no longer need PMI.
If you think you can use any or all of the
above-mentioned benefits, please contact us to talk
about refinancing your mortgage today. Charter
Mortgage’s Senior Loan Consultants are waiting to help
you. Please call (808) 942-1101 for your free,
no-obligation consultation. We truly enjoy helping you
to save money through refinancing.
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