Mortgage Refinancing That Fits Your Financial Goals
You may have heard a lot about refinancing a mortgage these days, primarily due to interest rates being lower in recent years. Homeowners refinance their mortgage for a variety of benefits. They may need cash out refinancing for an emergency, project, or lower their monthly payments.
Saving money with mortgage refinancing can help with upcoming college tuition payments, provide cash for major home improvements, or just a better interest rate. Refinancing replaces the old mortgage with a new mortgage by paying the old mortgage off and starting a new loan with all new terms. Jacob & Jacob Realty and Finance serves the Greater Los Angeles, California area with a variety of refinancing options for commercial and residential clients.
The Key to Home Refinancing
The key to refinancing your home is working with a mortgage broker and loan officer who truly knows and understands the process of mortgage refinancing. When you work with an experienced team like Jacob & Jacob Realty and Finance in Glendale, you can be confident you are working with a mortgage refinance expert.
Most mortgage refinancing negative scenarios occur when you don’t utilize an experienced loan officer to conduct the refinance process for you. If you don’t have anyone looking out for you in the process who has the right knowledge, you could end up increasing your costs and rates rather than lowering them.
Refinancing loans can work well for those with a reliable and positive credit history. Items such as converting a variable rate to a fixed rate and lower interest rate are usually the primary goal when homeowners choose to refinance.
In some cases, mortgage refinancing is even used to cancel old mortgage insurance premiums. Sometimes homeowners consider refinancing in difficult economic climates when making their monthly payment becomes challenging, and a lower payment would be attainable and help to keep them in their current home.
Customization of Loans
New loans can be customized with the owner’s needs in mind when replacing the old mortgage loan. The amount borrowed, the loan’s new rate and total length in years are decided in the refinance process. It’s possible many years have passed since your original loan, and you may not like your loan terms anymore. Refinancing allows you to create a new loan that fits the new terms you need. The type of loan that is right for you can be discussed with your loan officer based on your current circumstances and goals.
Popular Refinance Options/Loans
- Rate-and-term Refinance
The most common refinance is rate-and-term, and the difference between the new loan and the old loan is the mortgage term or rate, or both. An example would be someone taking a 30-year fixed rate mortgage and switching it out for a 15-year mortgage.
- No Cash-out Refinance
No Cash-out refinance allows you to add your closing costs to your loan balance so you have no out-of-pocket costs.
- Cash-out Refinance
Cash-out refinance would be an optionally lower mortgage rate from the original loan with a shorter term. An example is switching from a 30-year to a 15-year mortgage but borrowing a larger amount in the new mortgage. Cash is paid at closing and can be used in debt consolidation or for student loans. These loans are also used when combining first and second mortgages.
- Cash-In Refinance
Cash-in loans are used for canceling mortgage insurance premiums, to get lower mortgage rates, shorter terms, or both. Owners can take advantage of lower rates through the specific loan to value ratios on their home.
Jacob & Jacob Realty and Finance is located conveniently in Glendale, serving the Greater Los Angeles, California region. Call us at (818) 536-7332 to learn more about our mortgages, line of credit, real estate services, and refinancing loan options.
Learn more about mortgage refinancing at usa.gov.