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

Can I Refinance My FHA Loan?

Yes, in fact if you took out an FHA mortgage in 2013 or 2014, your mortgage insurance premium on an annualized basis was likely upwards of 1.3% of your loan amount driving the cost of your monthly PMI higher On January 26, 2015, the FHA  announced they will be reducing the monthly mortgage insurance premiums on FHA loans  moving forward. The  PMI  on FHA loans is now .85%, a substantial reduction  in the PMI cost making the prospect of refinancing much more attractive for many. Take the following example:

For buyer who purchased a home in 2014.

Let’s say the purchase price was 470,000 and their mortgage payment on an FHA loan is $3151 per month, with a 30 year fixed at 4 %.

New loan numbers might look as follows:

new loan amount $413,105 at 3.625%

principal and interest payment $1883

taxes $578

insurance $70

PMI $267

new mortgage payment $2799 earmarking a savings of $443 per month!

3 Drivers Of Why Refinancing Your FHA Mortgage Makes Sense in 2015!

Mortgage interest rates are lower. A lower rate of interest means a subsequent lower monthly payment.

Lower finance loan amount now as you’ve been paying principal and interest on a monthly basis with your balance decreasing each month since you last took out a mortgage. Financing a loan size lower than your previous loan amount also drives the payment lower.

PMI  is the biggest driver is the PMI is substantially lower now than on the last FHA mortgage you previously took out.

If  You have an FHA mortgage with any interest rate 3.25% or higher, now is the time to consider refinancing your FHA loan into a new FHA loan or the possibly looking at a conventional loan. Conventional loans moving out of FHA loans will not allow for an approval without or no foreclosure at all or four years on a previous short sale. In other words if the reason you had to go FHA first place was due to a derogatory credit event such as a short sale or a foreclosure seven year and four-year time frames  hold.  That does not preclude you from the ability to save money by refinancing into an FHA loan considering in 99.9% of cases that provides for an immediate net tangible benefit in the form of lower interest expense and payment on the household cash flow.

Do  You have an FHA mortgage? If you’re thinking about refinancing start with us by getting a free quote, to see how much you can save.

 

 

 

 

Do I Need To Provide Bank Statements For Getting A Sonoma County Loan?

Yes, lenders will need full supporting documentation showing cash to close and/or savings in the bank necessary for qualifying on whichever loan program you are working with. Expect lenders to require at least two months of bank statements on any monthly account, and most recent last two quarters on any quarterly accounts same goes for annual accounts. Do make sure to include the full statement for each account e.g. all pages, all schedules even if the pages are blank. A  Bank/asset statement to a mortgage lender is just that- the entire statement. Additionally, pictures of bank statements taken for example with a smart phone will not work.

Looking to get a mortgage? Start by getting a complementary rate quote online today!

FHA Mortgage Insurance Premiums Now .85%

The mortgage insurance premiums on FHA loans has now been reduced .85%. This represent more borrowing ability for mortgage consumers looking to purchase or refinance their homes. On a loan of $300,000 that’s an annual reduction of $1350, or $112.50 per month respectively.

Thinking about refinancing your current FHA loan from a few years ago?  The mortgage insurance premiums reached as high as 1.3% of the loan amount now reduced to .85-the savings can really add up given your size of financing. If you’re thinking about reducing the mortgage payment on your FHA loan or buying a home with a lower monthly payment, you owe it to yourself to at least explore the options.

 

The premiums are effective January 26, 2015. If you are currently working with the lender for an FHA loan agent very easily be able to reduce your premium on January 26 and effectively wrap up your loan.

Start  Today by getting a complementary FHA mortgage rate quote!

What’s the best way to determine a breakeven on a santa rosa refinance loan?

This can be accomplished in a variety of ways, but the most common way is to take the monthly savings you generate by refinancing your home and divide it into the capital idea closing costs required to complete the refinance. If you can breakeven in 2 to 3 years, this in most cases is normal although in some instances taking longer to recuperate still very well make sense if you plan to keep the loan.

Alternatively, another option is to take the interest savings that you’re going to generate by completing a refinance in relationship to the current interest you’ll pay on your loan moving forward.

Not sure how to calculate the numbers? Call Scott at 707-217-4000.

Or get started with a complementary mortgage rate quote to see how the numbers play out.

Should I work with a mortgage broker or a mortgage lender?

Depends-primarily on who you feel comfortable with. Let’s be honest, this is the largest transaction most people ever take on in their entire life and should be handled with somebody who knows what they’re doing. A mortgage broker does not control their own money. Instead they act as an intermediary between you the borrower and the lender and as such, charge fees to do so. A mortgage broker used to have a massive product offering pre-2007. Ever since, the wholesale lending environment is a fraction of what it used to be and the banks have stepped up their retail offering direct to the consumer. Enter the mortgage lender. The mortgage lender unlike a bank only focuses on the origination of mortgages not all the other ancillary banking products IE credit cards, auto loans etc.

The mortgage lender does lend their own money and they get to make credit decisions as they take all the risk unlike a broker. The lender has several distinct advantages;they also control the pricing of their loan allowing them to be flexible on the rate and fees, and can handle the loan application through funding in one streamed process. A mortgage broker does act similarly with the proces,s but they do not control the underwriting decision -where the lender does.

Can’t decide where you should go to get your mortgage? Begin with the free mortgage rate quote for your purchase or refinance, it’s fast and there is no obligation.