Refinance options: reasons to refinance in the California market

  1. amsmortgage profile image59
    amsmortgageposted 7 years ago

    There are many reasons to refinance but the most important thing to remember is “The very best rate on the wrong loan will cost you more than a very good rate on the right loan.”

    1. Lower your interest rate

    Securing a lower interest rate is one of the top reasons people refinance.  Just be sure that the loan you choose is the best loan for you.  A loan is more than just the interest rate because a loan with bad terms can cost you more in the long run.

    2. Build equity faster

    To prepay or to save, that is the question.  To get the most out of your loan you may need to adjust the way you pay your loan and yourself.   

    With an Equity Reposition Report we can show you how your money works and in every case money in the bank grows faster than extra principle payments.

    3. Change your loan program

    Many homeowners who start with Adjustable Rate Mortgages desire to move to the stability of a Fixed Rate mortgage later on down the road. You may be in a Fixed Rate mortgage and anticipate moving within the next 5 years.  Circumstances change over the years and you never want to pay more than you have too on your mortgage.

    We can provide you with Total Cost Analysis to find out what you can save with various loan programs.

    4. Credit score has improved

    If your credit score has improved as a result of making your mortgage payments on time and in full or paying down your debt, you may be in a position to take advantage of your improved credit standing.

    We can review your current credit score, the terms of your existing mortgage, and use a Total Cost Analysis to help us find the loan that benefits you the most.

    5. Use the equity you have established

    A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, use the money for home improvements or personal expenses or meet your retirement goals by setting up a retirement account to fund your future.

    6. Combine your 1st and 2nd Mortgages

    It is very common to use your line of credit and then combine the two loans into one loan at an overall lower payment.   

    7. Reaching your financial goals

    You may have a mortgage that is working against your retirement plan.  You may also have equity that is sitting in your home earning no rate of return.  Whatever the case may be your mortgage must match your financial goals. 

    Regardless of your reasons for wanting to refinance, my team and I are interested in helping you make a decision that works best for you.

    We will begin by reviewing the terms of your existing mortgage program. It will be important for us to know the purpose of the refinance and how long you plan to stay in the home. Your financial goals are equally important because your mortgage needs to fit into your overall financial picture.

    When you finish your refinance with our team our service continues with our Rate Watch Report.  This monthly report will keep you informed on interest rate changes and how they affect your mortgage.