There is an old adage in the mortgage business that states that if you can improve your interest rate by at least one to one and half percentage points, then it is a good time to refinance.  While that may work as a general rule of thumb, the truth is that there are many reasons to refinance.
 
1) Lower your interest rate & Build Equity Faster

Securing a lower interest rate is one of the top reasons for refinancing.  This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.  If you are in a position to make higher monthly payments due to an increase in salary or other good fortunes, you may want to switch from a 30-year loan program into a 15 or 20 year loan structure.  This enables you to build equity faster and save a tremendous amount of money on financing fees.

2) Change your loan program

Some homeowners who start out in an Adjustable Rate Mortgage (ARM) find that they would like to switch to the stability of a Fixed Rate mortgage at some point. Others would like to combine their current first and second mortgages into a single mortgage plan.  An ARM may have been the most attractive rate and loan package when you last financed your home, but we can provide you with loan comparison charts to find out if you can save money with another type of loan program that might work better for your current situation or goals.

3) Credit score has improved

If your credit score has improved as a result of making your mortgage and credit payments on time, 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 review options for other loan programs that may not only reduce your monthly payment, but also save you money on interest fees over the life of the loan.

4) 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, or use the money for home improvements or personal expenses.

 

We will also review the terms of your existing mortgage program.  We will work extensively to help you integrate the mortgage loan you select to meet your long and short term financial goals. Our goal is to improve your cash flow, minimize taxes, and reduce your interest expense.  

Regardless for your reasons for wanting to refinance your existing mortgage, my team and I are interested in helping you make a decision that works best for you.  We continually monitor rates and alert our clients of interest rate changes in order to inform you on your opportunity to refinance.

 


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STEVEN J SORIANO
4010 Watson Plaza Dr. Suite 220 • Lakewood, CA 90712
Direct Phone: (562) 429-3532 •
Fax 562-497-4531
CA BRE: License # 009360113 & NMLS ID # 263934
An equal housing opportunity lender