According to the latest data, homeowners with mortgages originated in 2018 could save big if they refinance today. That is because 80% of mortgages from last year carry an interest rate that is 0.75% higher than the prevailing rate today, which is 3.49%, according to Freddie Mac.
There is one major factor why many are still not able to take advantage of refinancing their mortgage – the lack of awareness about how the mortgage market works.
In this post, we are sharing some signs that it is a good time to refinance mortgage, San Diego. Here are some:
Current interest rate. If you can get into a lower rate mortgage, a refinance is worth looking into. Please note that you need to consider the closing costs. In general, at least a half-point to a full point reduction in the interest rate will save you enough money to cancel out the closing costs in just a few years.
Have paid down enough balance on your jumbo loan. If you applied for a jumbo loan for your initial mortgage and have paid down enough balance, it might be worth-considering to refinance mortgage, San Diego. The question is how much is “enough”? If you have paid down the balance to less than USD 417,000, there is a big chance that you get a “regular refinance,” which means to say, you have a good chance to qualify for a lower interest rate even if the rates, in general, have not gone down significantly.
Length of time you stay in the home. Here’s the thing: If you do not intend to live in your home for at least two years then it’s probably not worth it to refinance at all – unless, of course, if you are refinancing from a very high-interest rate to a much lower one.
Your credit score. If there is a great improvement in your credit score from your original mortgage, it’s probably worth it to refinance your mortgage. So check your credit report and if you notice a significant change, you might be able to get a refinance offer that is has a way lower interest rate. You should take advantage of it.
Want to refinance mortgage, San Diego, but not sure whether or not you are getting a great deal? Talk to a mortgage expert at HomePlus Mortgage today.
Contact us at (949) 855-2905.