If you’re looking to reduce your monthly mortgage payments, now is the perfect time to consider refinancing your home. Mortgage rates can fluctuate over time, and you can end up saving thousands of dollars by refinancing. Here’s what you need to know about refinancing your Bay Area home mortgage.
What is Refinancing?
Refinancing is the process of getting a new mortgage for your home to replace the current one. Since mortgages can last for decades, many people refinance their homes at least once over the course of ownership in order to secure a better loan. Before refinancing, it’s important to make sure that rates are favorable so you avoid overspending.
Why Should I Consider Refinancing?
There are a number of reasons why you might consider refinancing your home. The most common reason to refinance is to get a lower interest rate on your loan. Interest rates are usually tied to your credit score, and your credit score can go up significantly over the course of just a few years. If you got your mortgage when you were in your early twenties and still paying off debt, but have more financial stability now, it’s worth checking current interest rates to see how much you can save.
Many people also use refinancing as a way to take out a line of credit on their homes. This is only advisable if you have made improvements to your property over the years and its value has gone up. If this is the case, you can refinance your home to take out a line of equity. This amount is directly related to the overall value of your home. You can then use this money for things like large purchases, home repairs, or paying down debt.
Refinancing Your Home
Refinancing can be complicated, so it’s important to work with a professional who can help you achieve your financial goals. When you’re ready to refinance your Bay Area home, contact Karen Douglas at The Mortgage Genie by calling (925) 648-0981. She specializes in helping Bay Area homeowners get fair mortgage rates. Not only can she help you get some of the lowest rates in town, but she can also make the process hassle-free.