Did you begin a mortgage at the end of 2018 or even into 2019? During this time interest rates hit a multi-year high. The current market includes some of the lowest rates we've seen in recent memory. This translates into a potentially significant interest saving to you if you choose home refinancing. Additionally, did you finance your home with an FHA or VA loan? If so you may qualify for home refinancing programs that do not even require a home appraisal or proof of income. We know the housing market well in the local North Hollywood California area and can help guide you during the home refinancing process.
Are you unsure whether home refinancing makes sense for you? Working with Southern California Trusted Realty Associates, we will help you evaluate your current circumstances to see if it makes sense. Also, have you had a significant increase in income? Have you recently paid down large debts? A positive change in income or debts can dramatically increase your credit score - which could result in a potentially much better interest rate if you go with us for home refinancing.
You might also choose home refinancing if you have an ARM (adjustable-rate mortgage). Refinancing your home now to a fixed rate loan can allow you to budget your monthly expenses more easily. Also, given the low interest rates and strong North Hollywood California housing market, you can lock a low rate so that you don't have the risk with the fluctuating rate the next time your ARM is set to adjust.
Perhaps your payments are already unmanageable. Home refinancing can help here as well. Let's say you have been paying on your 30-year mortgage for seven years and you choose to refinance to a new 30-year mortgage. This has the potential to extend your repayment period and lower your monthly payment amount.
Alternatively, if you are instead motivated to pay off your mortgage quicker and pay less interest overall, you can choose home refinancing to a 15-year fixed loan term. The mortgage payment will go up, but you will end up saving interest over the life of the loan. Shorter term loans also increase equity much faster than a longer term fixed loan.
We would love to speak with you so please don't hesitate to reach out if you have any questions or comments.