Is a refinancing option in Whittier the right option for you?
If you have lived in your home for a while, you may be thinking it is the right time to refinance your mortgage. There are many different reasons why you would want to do this, among which include shortening the term of your loan, consolidating your bills, swapping to a fixed rate from an adjustable one, lowering your rate of interest or simply taking advantage of the equity of your home.
Generally, if you can recover the closing expenses in the first 30 months of the new loan you have, it is a good idea to consider mortgage refinancing.
Remember, there are many advantages to reducing how long your loan lasts. Though you might have monthly payments that are a bit higher, having the term length of your loan reduced can generally mean saving a substantial amount of money in the interest costs and a rapid build-up of equity.
In addition, you may currently have an adjustable rate mortgage that just is not giving you the satisfaction that you need. Whether there is potential for an increase in rates or the rate is higher than you want it to be, there can be trouble when it comes to adjustable mortgage rates. If you want to stay in your home for the next five years, you may find that now is the best time to get a fixed-rate loan. Of course, if you want to move within the next three years, you may want to get some refinancing to a new ARM to take advantage of what may be a low rate right now.
Many borrowers have also been able to build up quite a bit of home equity over time through principal reduction and appreciation. These individuals have the option for refinancing their existing mortgage to a higher amount for the loan with any additional funds used as they wish, whether it is an investment, debt consolidation, a car or tuition. In addition, the interest that is paid on the cash out, unlike other loans, it could be completely tax deductible.
If you currently are dealing with a balloon mortgage and are expecting the make a lump sum payment soon, you may want to consider refinancing as long as you are comfortable with the current environment for rates.
Options For Everyone
Regardless of the reason, if you’re interested in refinancing but do not really know whether you are going to save money in the process, we can help you figure out what will work for you in your current situation. We can help you figure out how much your new monthly payments will be and how much you would need to pay for the refinancing process.
When you decide to undergo the process, the lender will need much of the same documents that you had to provide for the first closing. In addition, you will need to provide a new credit check, appraisal, inspection, title search, insurance and survey. Depending on your loan program, you might also be subject to origination fee.
A Great Way To Save Your Home
Of course, as the interest rates in California begin to drop, many people in Whittier have started to consider refinancing, and for plenty of good reason. When you are going to replace your current loan with one that has a lower rate attached to it, you will benefit in the short and long term with lower payments each month.
Give our team of agents a call today to ask for more information or to schedule an appointment to discuss what options you have with refinancing your current mortgage today. We are always ready to help and have the experience in California necessary to get you going.