Learn All About Refinancing
Is Refinancing in Redding Right for You?
When you do refinancing in Redding, what you’re essentially doing is creating a second mortgage on your home to cover your first mortgage. Refinancing is something people do when they are buying out another individual who is on a deed or to get a lower interest rate with another company, among other reasons. There are many types of refinancing available, which you can discuss with your refinancing expert.
Is refinancing in Redding right for you? You have to consider many things, including whether you have the right credit for an FHA loan. In general, if your credit score is very low — under 500 — or you have a spotty credit history, you may be limited in your options and be unable to qualify for this type of loan. However, you do have options, so speak with your qualified lender to see if refinancing is right for you. Use this guide to see if you should refinance, or if you should leave your mortgage as-is or explore other options.
You Have Great Credit
Has your credit greatly improved over the last few years and you want to refinance your home or consider FHA loan programs that may be available to you? If so, it’s time to see a lender. Your improved credit score can lead you to better refinancing terms, including a lower interest rate, so you can feel more comfortable with your home ownership experience.
You Want to Remodel
A lot of times, homeowners consider refinancing in Redding because they want to remodel or renovate their California home. This helps create more equity overall and can increase home value, which is important in the competitive California market. Do you want to remodel but you don’t have a lot of money to pay for the expenses out of pocket? If your credit history is good, you are able to show proof you can pay on a second mortgage, or you have enough equity in your home to take out an FHA or other type of loan, then you can consider this option.
You Just Want to Know Your Options
Perhaps you aren’t ready to refinance just yet, but you still want to know what your options are. You can consider refinancing your home if you want to know your options since you don’t have to commit to the process just because you’ve looked into it. While this type of mortgage option can be beneficial to you, it’s not for everyone, so make sure you choose a Redding mortgage company who understands your situation and has the ability to show you several types of loans.
There are many types of mortgage loan options available on the market to give you peace of mind. If you are unable to refinance now, your mortgage specialist will help you learn ways you can become eligible for a mortgage loan in the future. If you are qualified to do refinancing in Redding now, you can have your lender assist you with every step of the application process.
3 Myths About Mortgage Refinancing, Busted
Refinancing your mortgage is a scary prospect. After all, you most likely already spent thousands of dollars paying off the mortgage loans you have now. But sometimes, conventional mortgage refinancing is the best way to reduce your home loan rate of interest and save money.
If you are worried about how to go about starting the refinancing process, relieve some of your fears by separating fact from fiction. Here are three myths about conventional mortgage refinancing, busted.
Myth #1: It’s Already Too Late to Refinance
No matter how long or how short a time you have been paying off your current home loan, you always have the opportunity to refinance. The key to conventional mortgage financing is considering the break-even point of your new loan. For instance, if your one-time cost to refinance is $4000, but it saves you $100 a month on your monthly mortgage payments, then after 40 months, you will be saving money on each payment. As long as you are sure you won’t be moving out of your home before the break-even point, refinancing should reduce your overall expenses. This is great news for many homeowners, as a study from 2016 shows that for the past 13 years household income has increased by 28%, but the cost of living has also increased by 30%. Hopefully, refinancing your home will help offset this imbalance between income and living expenses.
Myth#2: You Won’t Be Able to Qualify
You may be thinking that after the last housing meltdown, it is almost impossible to qualify for conventional mortgage refinancing. However, this is certainly not the case. Even if your credit has been struggling, the improving economy has led to loosening guidelines for refinancing options, giving you a better chance to qualify.
Myth #3: Refinancing Takes Too Much Time
While it may seem daunting at first, begin the process of refinancing with a quick five-minute phone call to check on your rates and compare with other rates your lender has available. Once this first step is done, it is possible to streamline the refinancing process if you have an FHA loan or VA loan. If you have taken out one of these loans, you may be eligible to skip some of the extra paperwork, such as income verification or an appraisal.
Conventional mortgage refinancing may seem difficult at first, but it could be well worth the effort Qualifying and applying for refinancing options is completely doable in the current market and could save you a lot on your monthly expenses.
Why Should I Refinance My Mortgage?
Refinancing your home is an option many people tend to overlook. This might be because they think conventional refinancing won’t help their financial situation, or they simply give up because they’re overwhelmed by the financial mumbo-jumbo associated with refinancing in the first place.
Fortunately, refinancing your home is a great option for many homeowners. In fact, conventional refinancing is made even easier with the help of a financial expert. In 2016, a survey performed by the National Association of Realtors found that homeowners who refinanced were able to finance 90% of their home price.
Here’s how you can tell if you’re ready to refinance your home or discuss other mortgage loan options.
Interest rates have lowered
When homeowners typically purchase a home, the interest rate is determined by a number of factors. There is no greater influence on the interest rate of your mortgage, however than the national average for homebuyers, which is influenced by the economic climate of the country, location, and general housing market trends. Refinancing your home becomes common when the national average for interested rates have lowered below your current mortgage’s rates.
This is the perfect time to discuss your conventional refinancing or other mortgage loan options with a trusted advisor.
Your credit has significantly improved
Buying a home, especially when you’re younger, can result in higher interest rates. This is most often due to a lack of credit history or poor credit history, though poor credit can affect anyone at any age. If you have no credit or bad credit, your ability to gain a loan is damaged. And if you are able to obtain a loan, you might have to pay high interest rates as a result.
Once you’ve improved your credit score, conventional refinancing can work in your favor. You will likely receive lower interest rates on your variable loan rate and you might even be able to switch to a fixed loan rate.
You want to stop paying for PMI
Private mortgage insurance (PMI) is a type of insurance incurred when a homeowner purchases their home for little or no money down. It’s an added protection for the lending bank to ensure that they don’t lose money by selling you a house for a low initial cost. However, you’re often able to cancel your PMI once your home’s value goes up and you’ve paid enough of the total balance. This is when conventional refinancing can truly work in your favor.
Refinancing your home can be a great option for many homeowners who have managed to improve their financial situation. If you’re interested in conventional refinancing options, talk to the financial group you can trust — at Megastar Financial in Redding, CA, we will help talk you through the conventional mortgage refinancing process and discuss further mortgage loan options to improve your finances. Call today!
Cutting Costs: The Dos And Don’ts Of Refinancing Your Home Loan
Homeowners often take the opportunity to refinance their mortgage when they find lowered interest rates or have improved credit scores. According to data from 2016, household income has grown by 28% in the past 13 years, but in that time the cost of living has gone up by 30%. Refinancing can sometimes ease the financial strain on families by reducing monthly loan payments, but if it isn’t done right refinancing could make matters worse.
The Dos of Refinancing
Do tidy up your finances before refinancing.
In order to be approved for a refinanced loan, your financials will have to be in great shape. Just because you were approved for the initial home loan doesn’t mean you will be approved for one again. Take time to pay off as much other debt as possible, build a positive repayment history, and make sure that your income-to-debt ratio is good.
Do perform a thorough cost comparison first.
Before you sign on to refinance your home loan, make sure that you will actually be saving money. Refinancing often has other costs such as establishment fees for the new loan and closing fees for the old loan.
Do refinance if your new loan is shorter and has lower interest rates.
To be truly saving money after these fees, the interest rates on your new loan must be significantly lower than on your old loan. The new loan should also be for the same length of time or shorter if possible. A longer-term loan may give you lower monthly payments, but the accumulated interest will always mean you end up paying more.
The Don’ts of Refinancing
Don’t refinance your home for more than its market value.
When a lender offers a loan that exceeds your home’s value, they charge much higher interest rates. You may not be able to deduct the interest you’re paying on this type of loan, possibly preventing you from making payments and leading to a foreclosure on your home.
Don’t rely on advertised special offers.
It’s tempting to sign up for a refinanced loan when they have special offers or honeymoon rates, but it could end up costing you more. The rates will be advertised as extremely low for the first few years, but after the honeymoon period, they will revert to the standard, less advantageous rates.
Don’t refinance because of pressure from a debt collector or credit card debt.
A debt collector will try to intimidate you to refinance because they want to get paid, and if you decide on the first refinance loan offer you see you may end up owing more. Refinancing because of credit card debt may seem like a quick fix, but if you get behind on the payments you could lose your home.
Ultimately, you should refinance your home loans because you know it will save you money and make your life easier. Make sure to bust out your calculator and do in-depth research before signing that loan agreement, and you’ll be saving money in no time.
3 Tips to Help You Get the Most Out of Your Mortgage
Buying a home is the biggest financial liability you will ever make in your life (if you don’t count having a child), and unless you’re paying for your home out-of-pocket, you’ll need to get a mortgage.
Mortgage loans can be complex and tough to get through, but you shouldn’t just pick one and call it a day. If you’re shopping for mortgages, here are a few tips to ensure you come out on top.
Don’t type, talk
It can be tempting to complete your entire mortgage process on the internet, but it’s in your best interest not to. You can use the internet to shop around, look at the various rates provided by different lenders, and even figure out an estimated monthly payment. However, when it comes time to actually apply for the loan, you’re better off going to the establishment and talking with someone in person. Too much can get lost in translation if you try to do it all over the internet.
You’re shopping for lenders, too
When you scour the internet comparing rates and talking with financial advisors about which loan is the best option, don’t forget that it’s not just about the rates. When you sign that application, you’re entering into a financial contract with another entity, and you want to make sure it’s someone who will help you throughout the process. Roughly 63% of homeowners are behind in their mortgage payments and don’t know about the services that their lender can provide to help them, so having a quality lender is ideal.
Not all fees are set in stone
Usually, a good lender will walk you through the various fees associated with the loan process and can explain to you why some are necessary. They might also explain that some are completely negotiable as well. When it comes to finding out which fees are which, you should inquire with your lender or attorney.
An important thing to remember as well is that your rate doesn’t have to be what it is forever, and you can opt to refinance down the road. That way you can reduce your rate or change lenders if you want, giving you a better deal. Just be sure to find a local entity, so if you live in Redding, CA, you’ll want to look at refinancing in Redding, CA.
Looking to apply for a home loan? Curious about refinancing in Redding, California? Give us a call today to discuss potential options.
3 Tips for Refinancing as Mortgage Rates Rise
In the current economic climate, many people are weighing the pros and cons of refinancing their homes. Refinancing is a popular way to balance finances and reduce mortgage rates. Of course, refinancing is by no means a simple process, and keeping some straightforward tips in mind can help you along the way. Here are just a few essential tips to keep in mind if you want to refinance your home.
Consider a Shorter Term
Many homeowners underestimate the money they can save by considering a shorter term fixed rate loan. These interest rates are lower than traditional 30-year fixed rate loans, which means you’ll save more and pay less interest throughout the life of the loan.
According to the latest data from Freddie Mac, the average 30-year fixed rate mortgage rate is 4.57%, compared to just 4.04% for 15-year fixed rate mortgages. That means you could spare yourself 15 years of higher interest payments as you repay your mortgage. If you can cope with higher payments and a shorter repayment period, you will ultimately save money.
Don’t Neglect Cash Out Refinance Options
Just like refinancing rates, home values themselves are on the rise this year. This means that it may be a good option to access your home’s equity using a cash out refinance plan. As with other options, there are pros and cons of this plan, some of which are risky, so proceed with caution.
Start Planning Soon
Finally, though mortgage refinancing rates are relatively low right now, they’re likely to increase over time. This means that the longer you wait to start the process, the higher the rates you may ultimately end up with. This is why it’s best to seek out the best specialist for refinancing Redding California has to provide with Megastar Financial.
So there you have it — proven tips to help you on your refinancing journey. Of course, the best step you can take is to find the best services for refinancing Redding California has to offer with Megastar Financial. Contact us today for more information.
Refinancing: What It Is, Some of the Benefits, and a Few of the Basic Fees
Refinancing your home can be a great option for many reasons, and there are several types of refinancing available to you to do so. Although, refinancing can be a complex process that can hold high risks and multiple variables. If you choose to refinance, you should consult with a lender thoroughly. If you’re generally curious about refinancing, you can continue to read below.
Why Would I Refinance?
When you went and shopped for home loans to purchase your house, you were looking for money to buy your house. When you took out that loan, you created a mortgage. Refinancing is the process of acquiring a new mortgage and is done for many reasons. One of the biggest reasons that people choose to do this is to reduce interest rates. Rates rise and fall throughout the year and if your rate that was fixed at the time of the signing is higher than the current rate, then you might consider refinancing to save some money. Another reason people choose to refinance is to withdraw some of their equity that they’ve built on their home, usually for large purchases such as a car. Refinancing can also reduce your monthly payments, and may also be used in the case that you want to change mortgage providers.
What Are Some of the Costs?
While not every refinancing process is exactly the same, the majority of them tend to have a few basic costs. These costs include:
1. Application Fee: This fee is primarily used to cover the lender’s cost of checking your credit history, as well as any cost to process the request.
2. Title Insurance/Search: This is the cost associated with title insurance that covers the policyholder in case of any inconsistency with the property title. It also covers the costs of ensuring proof of ownership of the property.
3. Attorney Fees: A lender will have an attorney handle the closing, and any fees that are associated with those services are usually paid by the borrower. There might be other legal fees as well, and it will depend on your specific situation and lender.
4. Origination Fees: This is the fee imposed by the lender for their work in preparing the mortgage loan.
As stated before, some of these fees could be waived, depending on your chosen lender. It’s important to be aware of any fees involved with your specific refinancing agreement and to find a lender that will provide you with these details and help you through the process. An astounding 59% of homeowners wish they understood the terms of their mortgage better, according to data from September 2016. Choosing the right lender who can explain to you the details of home loans or refinance in depth is essential.
Looking to refinance or inquire about home loans? Contact us today to get started.
Mortgages 101: What You Should Know About Refinancing Your Home
Did you know that 2016 data reveals an alarming fact about the cost of living? While household income has grown 28% in the last 13 years, cost of living has increased 30% at the same time. What it costs an individual to live is increasing faster than what people are being paid. Before you panic, you might want to learn more about your financial options. One way to mitigate the potential financial fallout is by refinancing your mortgage. To learn how that can benefit you, you should first have a full understanding of how mortgages work.
A mortgage is an agreement between a lender and a homeowner by which the lender agrees to lend the homeowner money which the homeowner will be required to pay back with interest. The homeowner, in exchange for this deal, gives the lender the title of the property. Once the debt is paid off, the homeowner has the title returned.
Conventional Mortgage Refinancing
Refinancing your mortgage is replacing your old mortgage with a new one. Home loans are agreements to pay your lender whoever much money you agree upon each month, for however many years you would like to pay that amount of money, and at whatever interest rates are available. It’s a very flexible contract really, but sometimes circumstances change a while after you’ve entered into the agreement. Conventional refinancing is just a revision of the original contract in a sense.
One reason people refinance their mortgages is that they need the money, maybe they want a kitchen remodel, or to buy the boat they’ve been looking at finally. You can get cash back from the equity you have in your home if necessary. Another reason people refinance is to have smaller monthly payments. People want a lower monthly payment when they can’t afford their original mortgage terms. Those who want a larger monthly payment refinance to pay off their mortgage quicker. They do this because they can afford to pay more each month. Remember, refinancing is a somewhat fluid process.
If you are looking to refinance your mortgage, give us a call today to discuss a fair and customized approach to your needs. The cost of living might be on the rise, but so are housing prices. If you need help paying the bills, or if you want to speed up the process of paying off your house, refinancing might be the best option for you.
MEGASTAR FINANCIAL CORP. is an Equal Housing Lender. DBO Lic # 603 G365 NMLS Lic # 235828(3043)*
Licensed by the Department of Business Oversight (DBO) under the California Finance Lenders Act * NMLS # 1162668.
As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, sexual preference, marital status, age (provided you have the capacity to enter into a binding contract), because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. We are regulated by the Fair Housing Act (overseen by HUD) and the Equal Credit Opportunity Act (overseen by CFPB), Washington, DC, 20580.
Example of 30 year mortgage:
$300,000 sales price, $60,000 down payment, $240,000 loan amount, 360 months, 3% interest rate, 3.132% APR, $1,029 Principle and Interest monthly payments, Payment does not include taxes, insurance premiums or HOA dues. The actual payment amount will be greater. Rates shown valid on publication date of June 29th, 2020. This example is for a conventional, not jumbo, mortgage product; there are restrictive upper loan amounts for conventional loans based on the property’s location. Example given requires a minimum 740 credit score with a debt to income ratio of under 45%. Applicant must be employed. This is not a promise to lend. All terms and conditions are based on the subject property, the applicant’s credit worthiness and the applicant’s ability to repay the loan.
15-Year Fixed-Rate Mortgage:
The payment on a $300,000 15-year fixed-rate loan at 2.723% and 80% loan-to-value ratio (LTV) is $1,626. The annual percentage rate (APR) is 3.178%. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Rates shown valid on publication date of June 29th, 2020. This example is for a conventional, not jumbo, mortgage product; there are restrictive upper loan amounts for conventional loans based on the property’s location. Example given requires a minimum 740 credit score with a debt to income ratio of under 45%. Applicant must be employed. This is not a promise to lend. All terms and conditions are based on the subject property, the applicant’s credit worthiness and the applicant’s ability to repay the loan.