Refinance Your Home with Sonoma County Mortgages

31Dec2011
Author:
Scott Sheldon
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Refinance Your Home with Sonoma County Mortgages

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As a homeowner, refinancing your home loan may or may not make sense. Lately you may have heard people refinancing due to low interest rates while this is true there are also other things to consider when deciding to complete a refinance:

  • Is debt consolidation an option?
  • Does the monthly savings justify costs associated with refinancing?
  • WhatWhat does the interest savings over the life the loan look like?
  • Can you pay your house off faster by refinancing?

So how do you know the right time to refinance your home?

Sonoma County Mortgages provides a free mortgage loan calculator to get help you calculate and compare your current loan program to other available loan programs and rates available in the marketplace, so you can decide if refinancing make sense for you.

When you're ready to begin your refinance, we can give you up front numbers so you can know you're making the right financial choice. By completing an online mortgage rate quote or online prequalification form, we can give you loan options and interest rates so you can do your proper research.

Tell us the loan programs you're interested in or let us suggest some loan programs for you based upon your financial situation. Choose from 30 year  to 15 year loans. We make the the researching phase easy so you can get a combination of the best possible loan terms with a competitive interest rate.

Decide on refinancing options:

  • Loan Term: 30 year fixed, maybe a 25 year fixed or even a 15 year fixed?
  • Discount Points: discount points versus no discount points cost/benefits?
  • Occupancy: primary residence, second home or investment property?

Many homeowners choose to refinance for good reasons. With today's low mortgage rates you might be able to save money on your monthly mortgage payments. Home loan refinancing can also give you cash out to consolidate debts or even improve your credit rating. Maybe you have a first mortgage and a second mortgage on your property? Mortgage refinancing can help you consolidate your first and second mortgage into one new loan. Maybe you're considering paying off your mortgage in full at some point? You can refinance your property into a shorter term loan to pay off your mortgage faster.

Whatever your reason and whenever you're ready, Sonoma County Mortgages can help you attain all the benefits of refinancing custom-tailored to your financial situation.

Refinancing Tips & Advice

Making Homes Affordable Program Harp 2 Refi

See How The Harp 2: Refinance Program works with No Loan To Value Restriction

Does It Make Sense To Refinance?

2 tests to determine if refinancing makes sense or not.

Discover the refinance loan process works from start to finish.

Use this free chart as guide to your refinance loan.

Why A Second Opinion Refinance Quote Is A Good Idea

Discover why receiving a second opinion refinance is the smartest choice.

Sonoma County Home Loan Refinance: A "How to Guide"

How to decide when to refinance your home.

When refinancing what's more important? The lowest APR or the lowest interest rate?

Learn the truth the answer might surprise you.

The role second mortgages play in refinancing your home.

If you are going to be refinancing, and you have a second mortgage loan how that component works.

How to refinance your home without starting over at 30 years.

Yes it's possible you can refinance without starting a new loan term.

Browse Q&A

Recent Questions & Answers

Are There Any Petaluma Mortgages For Loan Sizes Over $520,950?

Yes there are mortgage loan programs that exist for loans bigger than $520,950 in Petaluma and the surrounding areas. If your loan size is bigger than $520,950, your loan is classified as a Jumbo. Jumbo loans traditionally carry more risk to mortgage lenders than loans under that amount, otherwise known as Conventional Loans. However, as the economy has continued to improve, there’s been more appetite for bigger sized loans.

This can be attributed to Jumbo Mortgage Loans actually being priced lower than its Conventional Loan counterparts. It’s not uncommon to see a Jumbo size mortgage interest rate on a 30 year fixed rate at around 4.25% containing no points. When stacked up against the Conventional loan coming at 4.375% with .25% discount points, the Jumbo can certainly be very attractive.

In order to finance a Petaluma Mortgage over $520,950 you’ll need to have at least 10% equity in your home. Additionally, a very attractive option for homeowners is the ability to refinance a mortgage with less than 20% equity without monthly PMI. The program is called lender paid mortgage insurance and it is available Jumbos. Another option ….is some Jumbo loans even allow larger debt to income ratios which is ideal for self-employed individuals who write off business expenses. Conventional loans by contrast, usually contain a very rigid 45% debt to income ratio allowance, so the fact that some Jumbos go as a higher as a 50% debt load is a sign credit is continuing to open up.

If you are looking for a mortgage in and around Petaluma, California-we can help. Learn more by getting a complementary mortgage rate quote for your situation.

How Accurate Are Online Home Value Websites?

This is a topic near and dear to every homeowner. Many real estate websites offer a free online home valuation offering you a glimpse of what your home might be worth. Understand this, each of these websites, use their own proprietary algorithm to give you an idea of what your house might be worth. This algorithm because it is proprietary per website, meaning there is no way to see the factors in the use of each algorithm. In other words, the results are almost always 100% flawed.

What these websites are good for

These real estate sites are good for getting very rough preliminary view of only sold homes around your area, at best. These websites do not take into consideration sold properties, current listings, individual property uniqueness, segmented market statistics, individual square footage, lot size, bedrooms and bathrooms and of course curb appeal, all of which a full appraisal report does consider.

If you’re thinking about refinancing your house, after speaking with the loan officer, pay the $450 for an appraisal. Not only is probably more than likely worth it considering home values are up, but it’s the only way truly knowing what home is worth. If you’re not willing to invest for an appraisal, you’re never going to be able to complete a refinance, let alone know what your net tangible savings will be,moreover,  you could be missing out on a valuable opportunity considering the current direction of mortgage rates.

See if refinancing your home makes sense, start communicating with an experienced loan officer today. Receive a no obligation refinance loan quote now!

Why Is My Financed Loan Amount On My FHA Loan Bigger?

Buying or refinancing a home? An FHA loan much like a USDA loan, has two forms of mortgage insurance. There is an upfront mortgage insurance premium, UMFIP for short, which is based upon 1.75% of the base loan amount ( difference between the down payment amount or appraised value relative to equity) which is then added to the loan, creating the financed loan amount.

The financed loan amount is what the principal and interest payment is based off of as well is what the term of the loan is based off of. Additionally, there is a monthly factor typically about 1.3% of the loan amount before upfront mortgage insurance is factored in. So it’s important to remember when looking at FHA loans there is two forms of PMI, an upfront premium paid to HUD and then a monthly factor as well.

Planning to buy a home? If you have an FHA mortgage now, maybe refinancing might make more sense? Start today by getting a complimentary mortgage rate quote for an FHA loan or another mortgage type its online fast and free.

 

How do I make a bi-weekly mortgage payment if my lender won’t bill me that way?

This topic comes up frequently. Most lenders will not set up a biweekly mortgage payment

Making a biweekly mortgage payment is incredibly beneficial when considering the longer term interest costs over the life of a loan. It’s not uncommon to be able to shave many years off the payoff time by simply making a biweekly mortgage payment. However as cumbersome as it may be with your servicier, to try to set up that type of payment arrangement- there is an easier way.

 Make the 13th mortgage payment per year

Simple enough right? Simply doubling up a payment one month during each fiscal year, effectively that will have the affect on your interest savings and principal balance pay-down as making a biweekly mortgage payment every two weeks.

Here’s another way…

Make a 13th payment

For example let’s say your mortgage payment is $2500 per month,  that’s $30,000 in mortgage payments you make annually.

$2500 ÷ 12=$208.33 per month. If you were to make a payment at $2708.33 per month, that is effectively the same thing as a biweekly mortgage payment or 13th payment each year.

Looking to save money on a new mortgage? Start today by getting a complementary rate quote for your situation. We can even run scenarios for you showing you what the net tangible benefit savings could do by prepaying your mortgage over time.

Do Tax Losses On Closed Business Hurt My Chances To Qualify For A Mortgage?

No as long as the business is actually closed it should not hurt your ability to qualify from an income standpoint. For example let’s say you opened up the side business a couple of years ago, claimed some monetary losses on http://bayarearealestatetrends.com/your tax return, but have subsequently closed the business. Lender will not need to take the losses as a liability against your income which should not have any effect on your borrowing power.

What you’ll need:

  • documentation from the Secretary of State showing the business is in fact closed
  • an explanation of why the businesses closed and why the business losses were taken

However, if you presently own a business that is still running and you’re taking losses or showing lower income to avoid paying higher taxes which is customary showing larger profits, you could very well run the risk of not having enough income to qualify for mortgage loan you may desire. This is the conundrum if you will self employed borrowers deal with.

On one hand of the spectrum if you show maximum profits you’re going to pay income taxes on those profits, but at the benefit of being able to qualify for a loan substantially more easily. The other option is showing lower profits, lower income which keeps the tax man at bay, but at the expense of risking the chances of qualifying for a home mortgage.

Are self employed or own your own business? Been told you can’t qualify for a mortgage? Get a second opinion by getting a complimentary mortgage rate quote for your purchase or refinance today!