Mortgage Refinance Orange County
Mortgage programs last for a couple of years, with the most popular one lasting as long as 30 years. Within this time, your financial conditions change, and you may have to change your mortgage plan. If you need help with mortgage refinance in Orange County, contact Justin Purpero.
What is mortgage refinancing?
Initially, people choose their mortgage options depending on their financial situation at the time. In some cases, our finances can improve or worsen drastically, and you should consider changing your mortgage plan. Mortgage refinancing allows you to change the interest rate (or change between variable and fixed) and the terms of payment on your existing home loan.
People refinance their home loans in most cases to save on interest rates, and hence the monthly mortgage payments (consisting of interest payment and a portion of the loan amount). They also can change the terms of the loan, so that they can pay back the loan more quickly. However, it is not wise to lengthen the mortgage terms for the sake of lowering monthly payments.
Remember that any significant home financing decision you make will affect your credit score. In turn, this will decide how easily you can obtain loans in the future. People who end up saving money as a result of refinancing often spend it on home improvements to further increase the value of their homes.
Do I need a coach for mortgage refinancing?
Just like how daunting the process was for selecting a mortgage plan in the first place, mortgage refinancing can also be tricky. The whole purpose of refinancing is to take advantage of more favorable interest rates and ultimately save money. But refinancing has associated costs and effects on your credit score, so you need to have a thorough knowledge of refinancing strategies before changing your existing loan.
We have extensive years of experience advising people on their mortgage and refinancing plans, serving over 2,000 clients and closing over $1 billion in mortgages. If you require assistance with mortgage refinance in Orange County, don’t hesitate to contact us.
Who qualifies for mortgage refinancing?
As much as wise refinancing can lead to significant savings, it is not an option available (or suitable) for everyone. For refinancing, lenders will look at a variety of factors, including existing debt, income, savings, and credit score. All these indicate whether lenders can trust you with their money.
If you already started with a less than stellar credit score, you may not get access to lucrative refinancing options and reasonable interest rates. Your ability to get refinancing will also largely depend on who you borrowed from. Some types of loans, such as FHA (Federal Housing Association) loans have more flexible refinancing options than others.
For poorer credit scores, the down payment will be higher and vice versa. For example, a credit score of just 550 will mean the down payment is around 10 percent.
Are you looking to refinance your existing home loan? Reach out to Justin Purpero, if you need advice relating to mortgage refinance in Orange County.