Doing A Mortgage Refi In San Diego Is A Balancing Act – Here’s Why

So, you have decided to do a mortgage refi in San Diego? Or at least it has crossed your mind? Here is the thing: doing it is a balancing act. That means you have to be careful with your decision to ensure that you get a favorable outcome.

A mortgage refi in San Diego provides an opportunity to save a good amount of money – if you can find the best deal. The good news is, with the help of a reputable mortgage company or broker, you can achieve that goal.

So, why is a mortgage refinance a balancing act? Because you are going to consider the cost to the smallest detail. You want to make sure that the potential amount to save minus the costs associated with refinancing is positive. With that said, it makes sense to figure out the number and decide based upon what the number is telling you.

So, here are the six costs associated with mortgage refinancing in San Diego that you should know about:

Cost #1: Application and underwriter fees

Just like in any application process, to refinance a mortgage requires fees. Lenders usually require you to pay an application fee to cover the associated costs at the start of the loan process. Along with it, you may also pay for a loan underwriter, someone that helps assess your financial capacity to pay back this new loan.

Cost #2: Title insurance

You are to pay for title insurance (ask your broker about it). The purpose of this insurance is to dissipate any ownership disputes on the property during the loan term. Note that, although you may have purchased a policy when obtaining your original mortgage, they require a new policy when refinancing your mortgage.

Cost #3: Appraisal

Although not at all times, lenders will require a new appraisal of your home to ensure that it justifies the amount of the new mortgage. The value of your home has likely changed since the last time of the appraisal due to several factors. Thus, a new one may be necessary. Of course, this process has fees.

Cost #4: Credit score assessment

Of course, Federal law gives you the right to get a free copy of your credit report every 12 months. However, you still need to undergo a set of different qualifications or criteria for them to grant your request. In all likelihood, you will end up checking credit reports from other sources, which involves paying a fee. That fee will vary based on where the lender gets the credit check.

Cost #5: Taxes

Associated taxes also vary depending on where you live. So, it is a must that you discuss the local tax laws with your broker to ensure that you still get your end goal for refinancing your mortgage despite the possible tax requirements. Discuss the following: mortgage tax, realty transfer tax, mortgage recording fees, and probably more.

Cost #6: Closing costs

The costs associated with the closing vary significantly depending on your unique circumstances. However, a highly qualified broker should be able to find ways to do it in your favor.

Again, applying for a mortgage refi in San Diego is a balancing act. Weigh the associated costs versus the potential savings. With the help of a highly qualified mortgage broker, you can get your refinancing goal.

Online looking for a reputable mortgage company to help in your mortgage refinancing application in San Diego? Contact Homeplus Mortgage today at (800) 958-7587.