Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

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Refinance Applications Soar!!

Refinance Applications Soar Like An Eagle!

Refinance Applications Soar Like An Eagle!

Orange County, CA – Recent mortgage rates have meant so much to the mortgage market, with low rates spurring the housing market across the country. They have also encouraged what can only be described as an explosion in refinancing. Figures from the Mortgage Bankers Association (MBA) show that purchase mortgage applications at their highest levels for years. Yet refinance requests amount to 78% mortgage applications across the country. Strong home prices, a growing economy and low but rising interest rates have encouraged homeowners to try and save.

A mortgage refinance is nothing more than the act of financing your mortgage again. You take the old loan, get rid of it and replace it with a new one. With a refinance, you simply pay off the original loan and satisfy all the terms of that loan. At that point you are no longer obligated to the original lender in any way. At this point, there is a brand new mortgage which takes the place of the old one. You may be borrowing from the original lender, or you might be borrowing from a totally new lender. The features of the loan could be identical to your original terms, or they could be completely different. The only constants are that you clear the initial loan and create a new one. Whatever forms your refinance will depend on what you need from the loan. You might wish to refinance to a lower rate in comparison to the original loan, so that you can be sure to reduce your monthly payments. You may also refinance to take cash from the property. This is often done to reduce bills or to put money back into the property by way of repairs or improvements. You can also refinance to a shorter loan term which means paying off the remainder of the loan more quickly.

There are many reasons why homeowners choose to refinance. And this explains why they account for so many of the mortgage deals at the moment. For the most part though, people look to find a lower mortgage rate. When there are low mortgage rates to be had in the market place you find an opportunity to save. Homeowners can reduce their total interest expense over the life of the loan.

At the moment we’re still below the 4% mark for 30 year fixed rate mortgages, which really does mean that millions of homeowners stand the chance to benefit financially. But rates have been creeping up since last November. So if you’re considering a refinance sooner is better than later.

If you want to speak to us about the possibility of refinancing your loan then we’re only a question away! You should always take advice from a professional. We can look at your individual situation and give you the expert advice you really need.

Scott Storace

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