The “When” and “How” Of Refinancing Your Mortgage!

Regardless of how long you have lived in your home, it is smart to periodically revisit your mortgage, and think about whether you should refinance. If you decide that this is something you want to do, you should take note that refinancing is the process of applying for an entirely new loan. You will need to provide your lender with documentation of your assets, income, credit score, and job history all over again. Also, refinancing is not a free service. You may have to pay anywhere from a 2 to 3% closing cost. If the aim of your refinance is to lower your monthly mortgage payments, you should calculate how long you will need in order to recoup the closing costs so that you can begin to save.

Here are a few common reasons why people choose to refinance their mortgage:

  • To lower their interest and monthly payments
  • To be able to take out cash and use it to renovate their home or pay off debt
  • To lower their loan term to pay it off faster

It is smart to only refinance if you plan to stay in your house for at least a few years. If you are planning to relocate in the near future, you may not have enough time to pay off the costs of the refinance, which would make the refinance pointless. Interested in making the move, and refinancing your mortgage? Please speak to your lender and ask for their sound advice.

Do you have any further questions about your mortgage? If so, please contact one of California’s top insurance agents, Cary Amo! With over 20 years of experience, he has the tools necessary to help you with any and all things real estate. Give him a call, today!

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