Are you planning some major updates or renovations to your home? Are your children getting ready to head off to college? Or are you interested in purchasing a vacation or investment property?
If you said yes to any of the questions above, you are probably looking for ways to get your hands on some much-needed capital. We all know how hard it can be to save up large amounts of money or to earn extra money to pay for these additional expenses.
Another option may be refinancing your mortgage.
Of course, this option needs to be considered very carefully and discussed in detail with your trusted San Diego loan officer, but it could be the perfect solution for your financial situation.
If you are a homeowner, a mortgage refinance can be done to access some of the equity you have built up in your home over the years, to lower your interest rate, or to adjust your monthly payment schedule.
The first thing you will need to do is to determine your overall financial goals. Depending on what these goals are, you may or may not decide to refinance your mortgage. Your mortgage professional will take your current situation and future goals into consideration when they help you decide if a refinance is the best option for you. There are a few other factors that can also affect this decision, such as the current value of your home and your current credit score.
With a mortgage refinance, your lender will be creating a new mortgage contract for you and then dispersing the funds for your new loan. Those funds will be used immediately to pay off your previous mortgage, so you will still only be responsible for paying off one mortgage.
While a mortgage refinance may lower your interest rate and/or monthly payments, it is important to remember that there can be additional fees associated with refinancing your existing mortgage.
You will essentially be going through the mortgage process again – applying for a new loan, going through the approval process and closing on your loan – so all of those same fees will apply again now.
If you have questions about refinancing your mortgage, give us a call today! We are here to help you refinance your American Dream.