Refinancing Mortgage – California
Find out if now is the right time to refinance! You may be able to lower your monthly payments or reduce the time it takes to pay off your loan. Here are some important reasons to consider refinancing:
The advantages we offer for your refinancing needs include:
Low rates Easy online application All types of mortgage programs Guidance and advice from an experienced loan professional.
Things To Consider While
Are you tired of overspending hundreds of dollars on your current mortgage plan? In that case, you can always save some money by choosing to refinance it. When you choose a refinancing plan, it gives you the opportunity to replace your existing loan with a new mortgage that comes with better terms. So whether you’re looking to lower the interest rates or cut down on your mortgage monthly payment- a good refinancing plan will always be a viable option.
What Exactly Is Refinancing?
Like I already mentioned, refinancing is the process when you replace your existing loan with a new mortgage that offers better terms. For instance, if you have a 30-year mortgage with a balance of $200,000 and an interest rate of 4.6 percent, you can always refinance it for a new mortgage with better terms where you’re charged 3.2 percent for a monthly interest rate. In this way, you can end up saving more than $10,000 in your existing interest payment. In order to qualify for this refinance, you’ll have to pay your mortgage payments every month. In addition, you’re also required to hold a good credit history.
When Should You Refinance?
It goes without saying that you should only refinance when the mortgage rates are low. Like everywhere else, in California to these rates fluctuate on a daily basis. So keep proper track of the latest refinance rates in CA and discuss with your lender accordingly to lock in the best rate.
What are The Benefits of Refinancing?
Refinance home mortgage in California comes with several benefits. Here’s what you need to know about them.
Monthly Mortgage Payments are Low
When you choose a mortgage to refinance, it automatically reduces your monthly mortgage payments. A good refinancing plan can extend the term of your existing loan from 10-15 years to 30 years. This will reduce the monthly costs. If you have a mortgage loan of $200,000 with a 4.6 percent interest rate, refinancing it can lower your monthly cost of $1792 to $1329. This will happen when the 15-year term is changed to a 30-year term.
Lets You Change the Type of Mortgage
Refinancing will not only lower your mortgage payments, but it’ll also let you change the type of your current mortgage. For instance, if you currently have a variable-interest or interest-only plan, you can refinance the mortgage to change it to a fixed interest one. This will give you a complete idea of what your mortgage payments are going to be for the rest of the term. In case you have an interest-only loan, you can always refinance that to a fixed-interest one. While this might not affect your monthly payments, but it’ll definitely save you some cash on the interest payments.
Interest Payments are Low
If the interest rates had dropped since you last chose your mortgage plan, you can always refinance it to a lower rate. This will save you thousands of dollars. For instance, if the interest rate on your $200,000 mortgage (on a 30 year period) reduces from 4.26 percent to 3.67 percent, you end up saving more than $15000 in the interest itself.
Cash Out Refinance
This refinancing plan will help you tap into the equity of your property by choosing another mortgage over your existing plan. In order to apply for this refinance, you’ll need to have a positive equity. To put it simply: the market value of your property needs to be higher than the current balance of your existing mortgage.
When you choose this plan, you get to use a part of your equity to pay for the bigger expenses like home improvements or college tuition. The additional cash at closing will save a huge part of your current expenditure.
What Are The Different Types of Refinance Loans?
When you’re choosing mortgage to refinance options, it is better to browse through the different options available. Here’s what you can choose from.
Conventional Refinance– This is the most common refinancing option. It offers higher loan amounts, is available in both fixed rates and adjustable rates and comes with premiums that apply till the value of your loan reaches 80%. And that’s not all! The Conventional refinance can also be used for financing homes other than your primary residence. This includes both vacation homes as well as investment properties.
FHA Refinance Loan– This loan is federally insured and it gives you equity cash with a cash out’ refinance. In addition to this, it also lowers your interest rate with FHA streamline insurance.
VA Refinance Loans– This loan is offered to the veterans and their eligible family members. It is offered by the Department of Veterans Affairs and comes with many benefits. It lets you get your cash from the equity and also reduces your existing rate of interest.
HARP Refinance loan– If you currently have an outstanding mortgage amount which is more than the value of your home, a HARP refinance loan can assist you. However, in order to qualify for this, you should not have any late payments for the last twelve months and you shouldn’t be subscribed to a foreclosure plan. In addition to this, it also requires you to not use the Harp loan programs previously.
Things to Consider Before You Apply For a Refinancing Plan
Before checking out refinancing plans for your San Diego Home Loans, it is extremely important to get your annual credit report. Once you get this, clean your current credit rating before sending in an application. In addition, you should also consider delaying your purchase in order to save 20 percent in the down payments. While it’s possible to get mortgages with lower down payments, that’s still not a viable option as it spikes up your monthly payments. In this case, the lender might also need private mortgage insurance (PMI).
In order to determine the amount of down payment you’ll be able to afford, some lenders will need monthly escrow payments for covering up the homeowners’ insurance and the taxes on real estate.
Finally, before making your big move, shop around for the best offers and clear your homeowners’’ association dues. Once you do this, you’re absolutely ready for refinancing your mortgage.
© 2018 Lee Ann Stein - Home Loans