Refinancing

You want to be sure you are in the right hands when you refinance your home. You want a mortgage source that has your interests at heart 110% and has a lot of options in terms of capital resources or underwriters, lowering your interest rates and lowering your monthly payments while improving your loans terms.

You need somebody to work with you closely, someone to evaluate your current mortgage and someone who is a student of the loan market. Major lenders are limited to their underwriting programs. They are not very flexible and they cannot offer all that a loan broker can offer if they represent a large number of money sources as we do. We can provide you with a large number of options that other major lenders will not be able to do.

Many property owners are paying too much for their mortgage loans or are locked into mortgages that are unsuitable for their income level or their financial goals. Financial experts recommend that your mortgage payment require no more than a third of your gross monthly income. If you have some home equity but are finding it difficult to meet your mortgage payment–perhaps because you have an adjustable-rate loan whose interest rate has risen or because your income has dropped–you should seriously consider refinancing. Call today to learn more about refinance rates in California.

Even if your current home loan payments are affordable, there are other reasons to consider refinancing. Here are the main reasons why homeowners choose to refinance:

Save on Interest Payments

You might be able to refinance your home loan to a lower interest rate than your current mortgage rate. We can help you determine whether the interest savings are enough to offset the cost of the refinanced mortgage–with a significant rate drop, you can potentially save thousands of dollars over the full term of your loan. With FHA loan refinacing there are even more unique opportunities.

Lower Your Monthly Payments

Many homeowners refinance in order to ease their monthly payments. Refinancing to a lower interest rate is one way to do this, but in addition, homeowners can extend the term of their loan to reduce their monthly payments.

You can choose a 30- or 40-year fixed-rate loan for the remaining principal on your current loan or maybe even pay down some points.

Consolidate Your Debts

If you feel overloaded by high-interest debt on your credit cards or car loans, you may be able to consolidate all your debt into your mortgage payment. For example, if you have a $100,000 mortgage and $20,000 in credit card debt, you may qualify for a $120,000 mortgage and use the extra $20,000 to pay your other debt. Mortgage loans typically carry a significantly lower interest rate than consumer debt such as credit card debt, so refinancing can help in decreasing debt more quickly. Best of all, mortgage interest, unlike credit card interest, is usually tax-deductible.

Provide Spare Cash

One of the best reasons to refinance is to make home improvements or repairs. Such improvements may add to the value of your home, and you can wrap the costs into your monthly mortgage payments. Some homeowners choose to refinance into one mortgage, while others opt for a home equity loan or a home equity line of credit as the best way to access the equity value in their home.

Freed-up cash can also be used for other purchases or for college tuition. The best expenditures are investments rather than frivolous purchases–remember that you are reducing the equity in your home when you take out some of the value in cash.

Pay off Your Home Mortgage Sooner

Would you like to own your home free and clear as soon as possible? Consider refinancing your home to a shorter term, such as 15 years. While 15- and 30-year home loans are standard, mortgage lenders are also willing to consider home loans on your terms.

Increase Your Financial Security

If you have an adjustable-rate home loan, you might want to refinance to a fixed-rate loan so that your mortgage payments will stay the same for the entire loan period. This is particularly helpful if you expect interest rates to rise.

While there are seemingly as many reasons to refinance as there are homeowners, every decision to refinance should be based on solid calculations. Test out different refinancing scenarios to see how long it will take to recoup your costs. Let us help you make the very best decision for you possible.