Refinance Mortgage, Orange County, CA – Things To Consider

August 19, 2019

Refinance Mortgage, Orange County, CA – Things To Consider

By Published On: August 19th, 2019Categories: Orange County CA, Refinance, Refinance Mortgage, Reverse Mortgage

The latest data suggests that homeowners could save big if they go for refinancing today for their mortgages originated in 2018. 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 mortgage refinancing – the lack of awareness about how the mortgage market works.

In this post, we are sharing some things to consider before you refinance a mortgage, Orange County, CA. Take note of the following:

Current interest rate – If you can get into a lower rate mortgage, a refinance is worth looking into. However, you will have to consider closing costs. Generally, at least a half-point to a full point reduction in the interest rate will save you enough money. You can cancel out the closing costs in just a few years when you get between 0.5-1% reduction on the interest rate.

Have paid down enough balance on your jumbo loan – If you applied for jumbo loan for your initial mortgage and have paid down enough balance, it might be worth-considering to refinance a mortgage, Orange County, CA. 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 that 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 – If you do not intend to live in your home for at least two years then it’s probably not worth it to consider refinancing – 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 may be an ideal time to go refinancing. So check your credit report and if you notice a significant change, you might be able to get a great deal on a mortgage. You should take advantage of it.

Want to refinance a mortgage, Orange County, CA 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.