The mortgage rates have hit yet another record low, so it is no wonder so many Californians are refinancing their homes. In fact, the refinance applications are 111% higher than in 2019, according to the Mortgage Bankers Association. But before you refinance your home there are some things that you should know about the process.
Calculate Your Mortgage Refinancing Savings
To calculate your monthly savings from refinancing, use a mortgage calculator. By entering your current mortgage information and comparing your new monthly payment to your old monthly payment, you can see how much money you could potentially save by refinancing your home.
Choose Your Refinance Mortgage Loan Type.
Homeowners can choose from a few different refinance products depending on their financial situation such as a rate and term refinance, cash-out refinance, or cash-in refinance. As you can see, there are multiple options available.
30 Year Vs. 15 Year Refinance Mortgage.
One of the things to consider as well is the duration of the loan as it can be a 30 year or a 15-year loan. In a 30 year loan, most of your monthly payments go toward interest for at least the first 7 years of the loan, most of the time. You will have little home equity for many years unless you are able to build it faster through home-price appreciation or extra principal payments. Refinancing into a 15-year mortgage helps you build equity faster, but it may increase your monthly payment depending on how the loan is structured.
These are some of the reasons why we are encouraging everybody that has a mortgage loan over 4% to consider refinancing. You could save tens of thousands of dollars over the life of your loan by refinancing. If you are confused by the process or have any questions or concerns regarding your future refinance, email me your questions at [email protected] or give me a call, 714-345-6472.
About the Author
Ryan Christensen
Responsive, Responsible and Resourceful - How Real Estate Should Be. This is the foundation of our continued success: responsive service, providing accurate and timely information, and demystifying the process. 100% of my business is referral based because I listen to my clients' needs and exceed their expectations. As a full-time real estate broker, I am the best advocate for both my buyers and sellers. I am always available, regardless of the time of day.
Being a native Southern Californian is a tremendous advantage. I know the area. Time is more valuable than money, but neither can be wasted. And, I'm a fan of hard work. My clients can enjoy their home buying and/or selling experience because I provide a trusting, focused, straightforward approach. I look forward to helping you achieve your goals and find joy in homeownership.
I am both a licensed Real Estate and Mortgage Broker. Others choose to concentrate on one or the other. I provide a higher level of service and expertise than those who do not obtain this dual skill set, which differentiates me from other service providers. My decisions and advice are based solely on what is in the best interest of my clients. I use Real Estate Sales as a tool to make sure my clients get the home that meets or exceeds their needs. As a Mortgage Broker, I search for the best loans so I can offer lower rates and pricing than my financing competition. This certainly IS in the client's best interest.