Is a refinance right for you? In our interview with Southern California Homes – “Expert Advice On Refinancing Your Home Loan” – Jesse Collins explores refinance loans and discusses what homeowners should know. Excerpt below and view the entire article here.
What does it mean when you refinance a home loan?
Refinancing means that you are taking out a new home loan on a property that you currently own. This could mean either using the new loan to pay off an existing loan on the property, or taking a new loan on a property that is owned free and clear.
When do homeowners typically become interested in refinancing their mortgage?
Over the last few years the main focus of clients looking to refinance has been to take advantage of historically low interest rates. Refinancing can also become a priority when homeowners experience changes to their income, employment or family situation. There can be any number of scenarios where someone will be motivated to refinance a property.
What are the main benefits for a homeowner who refinances their home loan?
There are several main reasons where a client can benefit from a refinance loan:
a) to lower their interest rate and monthly payment
b) to take advantage of the equity they’ve built and take cash out of the home
c) to reduce the term of the loan so they can pay it off quicker
We work with each client to help them determine what their options are for refinancing and what (if any) is the best way to benefit from a new loan.
Full article may be viewed here.