SWIM WITH THE TIDE: Why the Time to Refinance is NOW
As a native San Diegan, I know all too well the high and low tides of our pristine beaches. Just like the ocean, the mortgage industry has its own ebbs and flows. Right now, the tides have turned and the industry is about to have the refinance wave come to a peak. This week’s rates have fallen to the lowest in three years due to a variety of political, economic, and cultural factors. If you have been waiting for the moment to refinance your home… hop on board and go with the tide.
"Right now, the tides have turned and the industry is about to have the refinance wave come to a peak."
If you answer YES to any of these questions, a refinance may be the right decision for you.
- If you currently are paying PMI (Private Mortgage Insurance) and feel that your home has increased in value, you qualify for removal OR have an opportunity to decrease your interest rate
- If you are looking to pay off your home faster and feel like building equity quicker
- If you want to cash-out for a major project or investment
Below are just a few of the reasons why you should ride the wave and refinance NOW.
REASON 1: RATES HAVE DROPPED
Everyone's unwritten rule as far as how much lower the rate should be is different as there are many factors that play into it “making sense” or not. Any small percentage can add up to a considerable amount in the long run. Mortgage rates are constantly fluctuating across the country, but when they reach a notable low, refinancing for a lower rate is one of the best choices you can make when you plan to own your residence for a considerable amount of time. PMI plays a similar role - I like to think of PMI as a different flavor of interest you still are paying and if you can eliminate that cost, then say YES to the dress… I mean refinance! :)
"Refinancing for a lower rate is one of the best choices you can make when you plan to own your residence for a considerable amount of time."
REFI MYTH 1 DEBUNKED: Many clients think that every time you refinance you will restart your mortgage and this is a FALSE FACT! We offer loan terms from 10 to 30 years and can recommend the best loan term for you!
REASON 2: IT'S A GREAT OPPORTUNITY TO SHORTEN YOUR LOAN TERM
When rates begin to fall, homeowners who would like to move from their residence sooner than they initially thought have the opportunity of refinancing into a lower term.
REFI MYTH 2 DEBUNKED: Short-term loans (i.e 15-year fixed) are only for people who want to live and pay off their “forever home”. This is absolutely NOT TRUE! A 15-year term allows you to pay more towards the principal. This is a great way to stack up your equity and prepare to rightsize your home later because you will have more equity in your home given your accelerated paydown.
REASON 3: TAP INTO YOUR EQUITY
If the value of your home has increased since your original purchase, you have the potential to take out a new loan and cash-out the difference between the original loan and the new one. This money can be used for projects, such as home improvements, that will in-turn increase the value of your home or large investments such as sending your child to college.
"If the value of your home has increased since your original purchase, you have the potential to take out a new loan and cash-out the difference between the original loan and the new one."
Regardless of your reasoning, it is worthwhile to stay current on market trends and find out if refinancing is an option for you. We are always here to answer any questions you may have and to help every step of the way. Your refinance does not have to be done through the bank you originally completed your loan with. Edgar and I are always here to help! Fill out this questionnaire to get started with the refinance process: https://bit.ly/RefiAndSave
If you have any questions, contact us today at 858-382-0030 or [email protected].