When to Refinance your Mortgage
All homeowner in Northern California and Southern California can be different and I'll help you decide if refinancing is the right move for you. Refinancing usually means lowering your current mortgage rate by at least one percent or staying around the same rate but consolidating higher debt (credit cards, car loans, etc). You might also want to consider changing the length of your loan or receiving money from the equity in your home. It's easy to see what will work for you, just run the numbers for yourself using one of our refinance calculator.
Possible Benefits of Refinancing
If you want to increase your monthly cash flow, refinancing to lower your monthly payment could help you out. To get a idea of what your new monthly payment would be, you can use a Refinance Calculator. Refinancing could also allow you to shorten your loan term if you qualify and help you consolidate Bills.
Using your Homes Equity
Many people borrow from the equity in their homes and to use the money to make improvements. 90-95 percent of the appraised value of your home can be used to make those improvements or consolidate debt. The equity you can use is measured on the value of the home and what you currently owe. You can still refinance if you do not have much equity – up to 95 percent loan-to-value (LTV) if you want to refinance your house for a new rate and term. A reappraisal of your property will usually be required.
Mortgages to Watch out for
If you need to get a Neg-Am Loan please only get the ones that have a higher / Fixed neg am rate. You do not wan't a 1% or 2% loan. Using these loans only causes people to lose their homes, if you have to get one, get one that has a higher rate rate such as a 4%, this allows you to make a much lower payment without your balance skyrocketing so quickly.