Refinance Your Home with Sonoma County Mortgages
Refinance Your Home with Sonoma County Mortgages
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
See How The Harp 2: Refinance Program works with No Loan To Value Restriction
2 tests to determine if refinancing makes sense or not.
Use this free chart as guide to your refinance loan.
Discover why receiving a second opinion refinance is the smartest choice.
How to decide when to refinance your home.
Learn the truth the answer might surprise you.
If you are going to be refinancing, and you have a second mortgage loan how that component works.
Yes it's possible you can refinance without starting a new loan term.
Recent Questions & Answers
Refinancing your home is based upon a variety of current listings as well as closed sales around your property. In most circumstances, appraiser will look for comparable data in a half mile radius from the subject property, your home. They will take into consideration the main facts, lot size, property square footage, bedrooms and bathrooms followed by cosmetic repairs/remodels. They’ll adjust for variances from lot size, to square footage from comparable data to your current home and make those adjustments accordingly. The property selling or not selling down the street Is still considered a comparable property. The property does not have to sell first for you to start the process on refinancing.
Its not a function of whether the property down the street sells or doesn’t sell but the fact that it is listed for sale-this is what causes it to be a comparable in determining your home’s value along with the other properties in and around the area.
If you are thinking about starting the refinance process, start by getting a complementary refi mortgage rate quote followed by getting qualified,
This is the mother lode question on every consumer’s mind seeking mortgage loan financing. Everybody wants to get the lowest and best possible interest rate for their mortgage right? Obviously, the lowest possible interest rate and least possible cost is ideal. The cold reality is that after you close escrow rates can drop below what you have thus you didn’t get the lowest interest rate. This happens all the time. Simple strategy smart consumers should look for….
Know The Game
Goes without saying, pay attention to the news on interest rates and run payment scenarios to see what your situations rate and payment would look like. Bar none the best possible place to get the best barometer of where interest rates are on any given day is none other than www.FreddieMac.com. Why? Because Freddie Mac is a government entity, it is unbiased and pure in its form.
For example compare any interest rate mortgage website and you’ll see ultra low interest rates, with a whole lot of very fine print. These interest rates come, with specific terms, specific steps, specific action items ‘you’ the consumer must do in order to get that ridiculously low interest rate as well as being adept to the fine print language. The overwhelming majority of people when it comes time to get in their mortgage rate want to know series of very simple things. How will I benefit? How much is it going to cost, what’s my rate, what’s my payment? Anything other than that, means using your own time putting together your own loan together in an effort to chase rate which may not be attainable anyway due to credit characteristics (credit score, loan to value etc).
Why A Government Site
Freddiemac.com takes an average of pricing against multiple lenders on a weekly basis and publishes it for consumers on the most common loan programs; a 30 year fixed-rate mortgage and a 15 year fixed-rate mortgage and any associated points and fees with those products. It is unbiased. There is no fine small print language, unnecessary steps nor sales pitch. It’s just the raw data which smart consumers should use to get the best idea of where interest actually rates are.
Know The Rates & Pick A Lender
Now you know the interest rates, time to shop lenders. Once you have an idea of where the market is in terms of interest rate, then you can start comparing fees and loan programs and determe what mortgage lender is best suited to your financial situation. Unless you have the time and the energy of structuring your own loan program with the lowest priced lender, leave the heavy lifting to the lender, make them answer the tough questions that you come to know and deserve as informed smart mortgage consumer. Start by Getting A Free Mortgage Rate Quote Now!
Few Helpful Blog Tips…
In most cases the closing costs are not actually higher, although they appear that way due to accounting for reoccurring costs such as mortgage interest, property taxes and fire insurance. Before we dive into the nuts and bolts let’s go over closing costs….
Re-occurring Vs. Non-reoccuring Closing Costs
Recurring Closing Costs: are the carrying costs of owning a home such as interest, property taxes and fire insurance. They are reoccurring in the sense that they are continual and open ended and they are not one time fees
Nonrecurring Closing Costs: these are the one-time fees associated every time you do some type of a mortgage or real estate transaction. Included in these fees are things such as title insurance, recording fees, a lender fee, escrow fee, Doc prep fee, payoff fees, things like that, one time fees specifically tied to some type of a transaction.
…..As For Why The Closing Costs Appear Higher
Closing costs on purchase transactions typically range about 2.5 to 3% of the purchase price of the property, not the loan amount. On refinance loan transactions, closing costs are approximately 1% of the loan amount on average. It does not necessarily matter whether purchasing the home or refinancing a mortgage, lenders are under tight scrutiny to disclose all material fees associated with the transaction.
If you have an escrow account or plan to have an impound account, same thing, by the way, the lender you’re making your house payment to every month will collect for monthly property taxes and fire insurance in addition to your principal and interest payment. Upon inception of the loan, the new mortgage lender will set up an ahccount for collecting these monies at settlement/at close of escrow. Because the lender has to have a surplus of funds in the newly established escrow account they have to collect for future months worth of property taxes and fire insurance which increases the loan amount on a refinance transaction or the cash to close in a purchase transaction, thus making the closing costs seem higher on the disclosures lender provides.
In other words, the closing fees aren’t necessarily higher it’s a function of setting up for the escrow account which inflates the figures, but at the end of the day it becomes a wash because these additional items such as the property taxes, fire insurance etc. are carrying costs are required to own property.
*Mortgage Tip: if you are financing real estate anytime up October through December February through April, the lender has to account for first and second installment of property taxes which are due even if you have an escrow account on the loan you’re paying off ( when refinancing) because the new lender does not have a way to reach into the escrow account with a lender being paid off to pay the first installment or second installment of property taxes when they are due. In such scenarios, a reimbursement is offered after the fact from the tax collector in about 2 to 3 weeks.
Looking to get an estimate of what your closing costs will be for a mortgage? Let us send you a complimentary spreadsheet of the numbers, no obligation start with our online mortgage rate quote today.
If you’re looking to refinance an investment property in Santa Rosa or the Sonoma County surrounding area and your loan is not owned by Fannie Mae or Freddie Mac, the property will have to appraise for market value. Here’s the catch, investment properties require a minimum of 20% equity as well as other lending criteria. For our purposes a investment property is a property that is rented out, and generates income. It can be single-family residence, planned unit development, condo or multifamily 2 to 4 unit property. Investment properties are identified on the Schedule E of the federal income tax return.
*Make no mistake, lenders give more scrutiny to investment properties transactions than primary home transactions.
Few Tips On Investment Property Mortgage Loans
- When refinancing, the property has to be rented out a lease for 12 months in some cases shorter ( with very strong explanations, including hows and whys)
- Fair market rents can be used to offset the mortgage payment, specifically 70% of these gross rents. For example, if the property is rented for $2000 per month and the total mortgage payment associated with carrying the property is $1900 per month there’s going to be a cash flow shortfall when it comes time to securing the new home loan. Math will be as follows ….70% of $2000 per month is a monthly rental benefit of $1400 per month, less the mortgage payment of $1900, translates to $500 per month which turns into a liability against total income on the mortgage application.
- Lease agreement will almost will be required if the property is rented.
- Investment property appraisals cost more because the appraiser has to do more work. On income property appraisals, appraisers have to include a fair market rent survey as well as operating income analysis making investment property appraisals typically around $650
So if you need to refinance your investment property and the loan is not Harp 2 Eligible, house has to be appraised at least 20% equity. In other words the biggest loan the lender can do is 80% of the value of the property. In most parts of Sonoma County, home prices are dramatically higher resulting in more equity, that is the difference between the value of the property and any debt associated with it. Our recent blog poss discusses how much house has to appraise to refinance.
If you are looking for a competitive interest rate on your Santa Rosa investment property, start by getting a free mortgage quote.
Mortgage lenders are under incredibly tight protection laws from the Consumer Financial Protection Bureau, CFPB. As a result, lenders must send disclosures every single time there is a change to the loan amount, loan program, fees, apr, any aspect of the payment including principal and interest, taxes, insurance or mortgage insurance, think of it like this, despite the annoyances of receiving 3 to 4 loan disclosures during the loan process wouldn’t that full transparency be better, then than receiving one set of loan disclosures and having there be a change later on at the closing table? The mortgage loan officer whom you’ve hired to help you with your loan should be able to go over any questions that might arise from new sets of loan disclosures. Always best to check in with your lender to see how things are going during the process unless of course, the lender you’re working with proactively updates you* a sign you’ve chosen a true professional.
Here is how our loan process works. We can walk you through the step-by-step guide to successfully purchasing a home or refinancing a mortgage. Let’s get started today by ascending use some complementary no obligation figures.