Refinancing your mortgage sounds like a complicated process, but you can make it way easier by taking these tips.
You made it through the roughest part of the whole housing predicament: buying the house. Now, perhaps a few years in the future, you’ll be ready to refinance your mortgage. Refinancing your mortgage may sound like a complicated process, and you’re right: it is quite the process. Going in blind is not recommended. But it can be a lot easier if you take these tips into consideration and follow through with them.
Mortgage Refinance Strategy
Lowering your payment is ultimately the goal, but signing another 30 years on your mortgage means that you’ll be tied down to this loan for pretty much your entire life and also end up paying more interest. Resisting the urge to extend your mortgage, but instead lowering your interest rate can significantly reduce the amount of interest you pay.
Use a Mortgage Refinance Calculator
These things exist for a reason, and you should use all of the possible resources that are available to you. The tool will calculate your monthly savings, new payment, lifetime savings, and how long you have until you break even.
President Obama’s Refinance Program
Home Affordable Refinance Program (HARP) came in 2009 to help revitalize the crashed housing market. Over 3.3 million borrowers have already refinanced their homes with HARP, and there are estimates that estimate more than 429,000 people who remain eligible.
Refinancing Your Home
- Determine your purpose for refinancing.
- Find out your current credit score.
- Research your home’s current value.
- Know your “all-in” costs.
- Gather all appropriate paperwork.
- Lock your rate.
- Have cash at the ready.
It’s important to remember how long it will take for you to recoup your expenses of a refinance (but your mortgage calculator should help you figure that out as well). For all of your home buying needs throughout the Solana Beach, California area, contact the professionals at Ranch & Coast Mortgage Group Inc.
