Mortgage refinancing rates dropped again to a historic low this week, prompting many borrowers to refinance in unbelievable numbers. Results from Mortgage Bankers Association’s latest weekly survey reflect this trend, stating that refinancing applications are up at a staggering 124% compared to last year.

So, are you going to jump on the bandwagon? Should you strike while the iron is hot? Below are the answers to the four most common questions regarding mortgage refinancing:

Is refinancing my mortgage a sound idea right now?

According to Freddie Mac, the average interest rate on a 30-year, fixed-rate loan right now is 2.79% – that is over a full percentage point lower than it was a year ago. That means to say, going for a mortgage refinance, San Diego can present great deals in the current environment. Take note that refinancing is all about capitalizing on record-low interest rates.

But then again, interest rates – as we know them – fluctuate. Thus, if your goal is to capitalize on record low refinance rates, it makes sense to do so sooner rather than later.

Does refinancing lower my monthly payment?

With the current trends in a mortgage refinance, San Diego, you will likely be able to save on mortgage payments when you can secure a lower interest rate. Put it this way: the less interest that accrues with your loan each month, the less money you will have to pay overall. Besides, if you switch from a 30-year loan to a 15-year loan, your lender will likely give you a better interest rate, which also helps you save.

Can I negotiate for a better mortgage refinance deal?

There are several ways you can negotiate a mortgage refinance deal. For instance, when your finances are in good shape, you can be given the best interest rate possible. Apart from that, you may want to explore some of the lender fees as you can also possibly get great deals in this area. The bottom line is that the stronger your application, the lower your interest rate can be.

What are the things to consider to qualify for refinancing?

Qualifying for a mortgage refinancing is quite similar to qualifying for a new home mortgage. But here are some specifics you should be aware of:

• Refinance services would want to see that you have sufficient income to cover the cost of the new home loan
• Your credit score should be in good shape
• You have not taken on too much debt
• You have a sufficient amount of equity built up in the home to borrow against (this is if you are doing a cash-out refinance)

Online looking for a reputable company that offers a mortgage refinance, San Diego? Contact us today at 800-810-PLUS (7587).