Thinking about refinancing your mortgage? Here are some tips to help you decide

By
Real Estate Agent with Coldwell Banker Brokers of the Valley, Yountville Napa Valley

If I can help you find the perfect Napa Valley property, please email me

Curtis@NapaValleyAddress.com  

Is a mortgage refinance right for you?


With rates for 30-year mortgages hovering below 4 percent since last October, all kinds of homeowners are trying to get their monthly mortgages reduced, say lenders and mortgage experts.

Along with months of record-breaking low interest rates, other factors are driving the refinancing boom: a competitive lending market and changes in some federal refinancing programs for struggling homeowners.  It's prompted many established homeowners with old-school, high-interest mortgages to decide it's time to refi.

Making sense of the story

  • To determine whether you should refinance, look at how long you plan to be in your current home and whether the upfront costs outweigh the monthly savings.  Generally the primary reasons for refinancing a mortgage are to:
    • Lower monthly mortgage payments.
       
    • Eliminate the unpredictability of an adjustable-rate mortgage by switching to a fixed rate.
       
    • Free up home equity cash for home improvements, college costs or other expenses.
       
    • Shorten the loan term, say from a 30- to a 15-year mortgage, which can save thousands in interest payments.
  • It pays to compare quotes from several lenders because they offer different rates and fees. Start with your current lender or sit down with a local loan originator. You can also do refinance comparisons online, using mortgage calculators at sites like Bankrate.com or those of individual banks and lenders. 

If you're a struggling homeowner, ask your lender about changes in the federal Home Affordable Refinance Program and FHA refinance programs that have made refinancing options more plentiful.

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If I can help you find the perfect Napa Valley property, please contact me

Your Napa Valley Broker Extraordinaire, selling Real Estate here from its heart, Yountville

My website & blog: www.NapaValleyAddress.com

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Rainmaker
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Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL

Now is a wonderful time to refinance if our circumstances fit there are some really awesome rates available. Have a great week ahead.

Sep 17, 2012 08:15 AM #1
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John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com, Albuquerque Homes Realty

Curtis,  Some great reasons to consider a refinance option.  Rates are still very impressive so why not take advantage and either reduce your monthly mortgage or shorten the term to save thousands.

Sep 17, 2012 09:44 AM #2
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Chris Ann Cleland
Long & Foster REALTORS®, Manassas, VA - Bristow, VA
Associate Broker, Northern VA

I wish I qualified to refinance without having to pay mortgage insurance.  My payment would be about the same because of that pesky thing.  So the lower interest rate doesn't do much for me.

Sep 17, 2012 10:34 AM #3
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Robert (Bob) Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX Real Estate Expert

Curtis,

Good suggestions as sometimes folks assume that by refinancing they are better off financially. I usually look at the pay back period to recoop the costs. The shorter the payback the more attractive it is to refiance. Thanks for another excellent blog.

Sep 17, 2012 02:49 PM #4
Rainmaker
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Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Curtis - Great information for consumers to be aware.  Refinancing may not make sense for everyone.  Great post!

Sep 17, 2012 11:27 PM #5
Rainmaker
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Robert (Bob) Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX Real Estate Expert

Curtis,

You make a perfect advisor for folks who want or need to buy or sell their home. You have such a down home practical approach. Take care and Cheers ..

Sep 18, 2012 09:17 AM #6
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Curtis Van Carter
Coldwell Banker Brokers of the Valley, Yountville Napa Valley - Yountville, CA
Napa Valley's Broker Extraordinaire in Yountville

Hi

Thank you all for stopping by and leaving your thoughts. cheers cvc

Sep 18, 2012 10:05 AM #7
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Curtis Van Carter

Napa Valley's Broker Extraordinaire in Yountville
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