3 MOST COMMON TOPICS WHEN DEBATING TO REFINANCE

When rates drop the media does the work for our industry but unfortunately the media can be wrong or late with headlines and articles. Did rates DROP, YES, did they bounce back up after dropping, YES they did.

Real QUICK: Lowest rates I have on JUMBO LOAN, FULL DOC only.

? 6.25% 30 year fixed ONLY, 1 point.

? Loans up to $4MM up to 80% LTV, 740 credit, owner occupied, purchase or refinance.

When should I refinance?

This is the $2 Trillion dollar question for the 1 to 4 unit residential market, this is how many loans if NOT more will be up for a refinance opportunity when rates drop or when it makes sense for those borrowers. I get calls, texts, emails, DM’s and etc. all the time asking about rates, when I should refi and when it makes sense. It is not just a straightforward answer and for every borrower their needs/motivation to refinance are always different.

3 MOST COMMON TOPICS WHEN DEBATING TO REFINANCE

Cost, the common question is how much this is going to cost me and how fast will I make up this cost if I invest the money into the refinance. If you are going to refinance and you can make up the cost in 3 years or less, it make sense. If you plan on staying in your house or this mortgage for 10 + years, then this might not matter as much because long term it will be worth it to refinance.

Savings, the common question is how much I need to save on the rate or the payment for it to make sense to refinance. This is a question only a borrower can answer, some people are happy with $200 a month in savings and others want $800. Some people want to save a least .5% in rate and others want at least 1%. It all comes down to your personal goals and what makes financial sense.

Term, the common question is most borrowers do NOT want to start over a 30-year fixed, maybe they are 5 to 10 years into paying down a mortgage and they don’t want to start over. Often borrowers will do a 20, 15 year fixed to shorten, the other option I suggest is do the 30 year fixed BUT pay more and pay off earlier. If you ever need that lower payment, you can always pay the 30-year term.

There are many reasons why people will refinance; get rid of MI, cash out, lower rate/payment, take someone off a loan, divorce and many more. Talk to a mortgage PRO that will advise/educate you and NOT just sell you on getting a new loan just to make the commission. Many people are going to wait until rates really come down lower and they receive more benefit.

Questions? Lets chat: Call/Text Kenny (619) 302 2020 or BOOK A CALL WITH KENNY