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PLEASE CALL OR EMAIL US:

Steven Burns

NMLS: 1745403

Tel: 909-255-7636

Cell: 909312-4189

Email: Steven@dbloans.org

Fax: 909-363-7610

1425 W. Lugonia Ave

Suite 102

Redlands, CA 92374

© 2018 by Steven Burns Mortgage.

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MORTGAGE REFINANCING

When Is the Right Time to Refinance My Home Loan?

Reasons to Consider a Refinance

As rates drop or home values increase, many homeowners consider if refinancing their mortgage is worth it.

The Most Common Reasons to Refinance Include:

  • Mortgage Rate Drop

  • Lower Payments

  • Debt Consolidation

  • Cash-Out For Home Improvement

  • Refinancing Out of an Adjustable Rate

1. Mortgage Rate Drop:

If you own for an extended period, there is a high probability that you'll experience a few windows where rates drop low enough to justify a Rate and Term Refinance. A Rate and Term Refinance simply means that you are making a change to the rate or term of the loan, such as dropping from a 30-year to a 15-year note.

Our mortgage professionals closely monitor daily rates and future economic patterns to keep our past and current clients in the loop if interest rates fall within their target.

2. Lower Payments:

Lowering a mortgage payment doesn’t always require a reduced rate. You can achieve a lower payment by lengthening the loan term, consolidating two or more mortgages into a single mortgage lien, or removing mortgage insurance (MI or PMI).

3. Debt Consolidation:

If there is a sufficient amount of equity, sometimes paying off the consumer debts by rolling them into your mortgage can significantly reduce overall monthly debt liabilities.

4. Home Improvements:

There are a number of home improvement refinance loan programs available for homeowners with or without much equity.

5. From ARM to Fixed - Peace of Mind:

Adjustable-Rate Mortgages can be an amazing tool when used correctly. They can go down and stimulate your savings, BUT they can also go up and stress your monthly payment capacity in a way that could end in foreclosure.

Of course, nearly all adjustable-rate mortgages are fixed for a predetermined amount of time-based on your loan terms which usually vary between 3 and 10 years fixed.

It’s important to understand the fundamentals of the factors that drive ARM rate changes and how they might affect your individual situation.

The macroeconomic principles that drive ARM rates can be understood by most when explained correctly.

If you purchased or refinanced and took your ARM out during an economic growth period and the economy has since declined - your adjustable-rate is likely going down.

If you purchased or refinanced and took your ARM out during an economic recession or other down periods and the economy has since improved - your ARM is likely going to adjust up.