George L. Duarte

Mortgage Loans Fremont California Horizon Financial Associates

  • Home
  • About
    • About
    • Awards
    • Privacy Policy
    • California Privacy Notice
    • Accessibility Statement
  • Reverse Mortgage Library
  • Resources
    • Real Estate Corner Radio Show
    • VA Loans
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Mortgage FAQ
    • Mortgage Glossary
    • Closing Costs
    • Loan Programs
    • Living Trusts
  • Reviews
    • Video Testimonials
    • Reviews
    • Write a Review
  • Apply Now
  • Contact

Mortgage Refinancing: How to Ensure a ‘Re-Fi’ Makes the Most Sense for Your Financial Situation

February 12, 2015 by George Duarte

Mortgage Refinancing: How to Ensure a 'Re-Fi' Makes the Most Sense for Your Financial SituationRefinancing your mortgage can make good financial sense, as long as you are doing it for the right reasons. Before considering a refinance, it’s worth spending some time to assess what your financial goals are.

Lowering Your Interest Rate

One of the most common reasons to refinance a mortgage is to take advantage of a lower interest rate. Because mortgages are long-term loans, even a slight drop in the interest rate on the loan can make thousands or even tens of thousands of dollars of difference over the life of the loan.

Before refinancing to get a lower rate, you’ll want to ensure that you will stay in your house long enough to reap the benefit of the lower payment. For example, if your refinance is going to save you $50 a month and your closing costs are $3,000, you would need to stay in your home at least five years just to break even.

A Shorter Loan Term

Another common reason people refinance their mortgage is to shorten the term of the loan. Though a 30-year loan gets you a much lower monthly payment, you wind up paying much more in interest over the term of the loan. If interest rates drop significantly, you might be able to refinance into a 15-year loan and only pay a couple hundred dollars more a month, which, if you can afford it, will mean you pay off your house much faster and pay significantly less in finance charges.

Moving From A Variable To Fixed Interest Rate

If you got a loan with a variable interest rate, you likely will want to refinance at some point into a fixed-rate loan. When you do so, however, you want to make sure you are getting a better deal. If interest rates look like they are going to increase, that would be a good reason to move to a fixed-rate loan.

Getting Rid Of Mortgage Insurance

If you put down less than 20 percent of the purchase price of your home, you likely had to get mortgage insurance. Depending on the insurance policy and how quickly your home appreciates in value, it might be beneficial to refinance at some point if you have enough equity in your home to drop the mortgage insurance.

If you think the time is right to consider refinancing your mortgage, contact your trusted mortgage professional to get more information.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage Refinancing, Mortgages

Sidebar

George L. Duarte

MBA, CMC, CMHS
Call 510.377.9059
Fremont, CA

California DRE Corp Lic no. 01032295
DRE Personal Brokers Lic. No. 00943635
NMLS Corporate Lic. No. 302358
Personal Lic. No. 302219

Horizon Financial Associates LogoView Lending CertificateNAMB Member Certificate

Get a Rate Quote
Mortgage Refinance Companies
NAMB
Proud Supporter Of Our Military
CMC Logo

Stay up to date with the latest news to your inbox!

No spam ever and you can unsubscribe anytime.





Horizon Financial Associates BBB Business Review

Connect with Me

Browse Articles by Category

Mortgage Pros2019 Best of Fremont2017 Best of Fremont2016 Best of Fremont

See More Awards →

Recent Articles

  • The Required Steps For A Smooth Mortgage Refinance Process
  • What’s Ahead For Mortgage Rates This Week – December 4, 2023
  • Managing the Construction Loan Budget
  • Negotiating Homebuying Costs: Securing Your Dream Home at the Right Price
Horizon Financial Associates is a BBB Accredited Mortgage Broker in Fremont, CA
Equal Housing Opp
crb logo REALTOR Logo


39488 Stevenson Pl Ste. 100
Fremont, CA 94539

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in