Reasons to Refinance Your Current Home

There are a variety of reasons why homeowners want to refinance their current mortgage.  Mortgage rates are still low in the current market, and one reason to refinance would be to obtain a lower interest rate over the course of the loan and lower your monthly payment.  Maybe you are hoping to cash out some of your home's equity by doing a refinance? Your house needs updating or you need help paying for your daughter/son's college tuition, or what if you just want extra cash to take that vacation of your dreams? With this in mind you will want to get a loan that is above the remaining balance of your current mortgage. This doesn't necessarily mean; however, that your monthly payments will go up.  If you refinance at a lower interest rate than you have now, you may be able to take out money and still have a lower monthly payment.  Another reason you may want to consider refinancing is to consolidate some of the other debt you might have built up with higher interest rates (ie. credit cards, vehicle loan).  Refinancing is an option if you have enough equity in your home. Finally, some borrowers are looking to pay off their mortgages over a shorter period of time while building up their equity at a more rapid pace.  Going from a 30 year loan to a 15 year loan might help you achieve this goal.  To help you understand all of your refinancing options, contact Joe Costa at San Diego's Park Place Financial Group.  www.parkplacefg.

The Importance of Dealing with a Mortgage Professional Prior to Looking for a New Home

It is extremely important in today's market to speak to a  mortgage professional before you even begin your search for a new home.  Getting a loan to purchase your new home can be a very complicated process especially with time frames that are put into place by real estate contracts.  By consulting a professional prior to your search you will have a much clearer idea of all of the details going through the application process entails.  Do you  know how important your down payment, FICO score, and employment history are to obtaining the right loan? Do you know that you should not buy a car, change or quit your current job, or use your credit cards excessively when you are going through the loan approval process?  Joe Costa, a San Diego mortgage professional from Park Place Financial Group can help you start the process by prequalifying or preapproving you before you begin your home search.  When you do find the perfect home and are ready to make an offer, you will have more leverage by being preapproved and having already consulted  a mortgage professsional.

Getting a Low Interest Rate

When you are offered a "rate lock" from your lender, it means that you are guaranteed to keep a specific interest rate over a determined period while you are working on your application process. This means that your interest rate will not get any higher while you are working through this application phase. Rate locks can vary in length, between 15-60 days, with the longer time periods usually costing more. You can get a longer period for your rate lock, but in making this choice, you will probably have a higher interest rate than you would have with a shorter rate lock period.

In addition to going with a shorter rate lock period, there are several ways that you can attain the best mortgage interest rate. The bigger downpayment you pay, the better your rate will be, since you will have more equity from the beginning. A borrower can opt to pay points to improve an interest rate for the term of the loan, which means you will have to pay more initially.  Joe Costa from San Diego's Park Place Financial Group educates his clients on this strategy and is a good option for certain borrowers to pay points up front to improve the interest rate over the life of the loan. You will pay more initally but you will come out ahead in the end.  

Determine How Much You Can Borrow

A couple of factors determine the amount you can borrow when purchasing a home.  What kind of monthly payment are you looking for? And given your unique credit and employment history, income and debt, and goals, how much will a lender loan you? Use the calculators on our Park Place Financial Group website to determine your monthly payment amount. We'll also help you through different scenarios by asking a few simple questions. Because lender guidelines are fairly standard, we can give you a good idea of how much you can borrow after a short conversation.  Call San Diego's premier mortgage professional Joe Costa at (646) 245-7856 or apply online at www.parkplacefg.com.

Your Down Payment

Lots of buyers can qualify for a mortgage loan, but they don't have a lot of money to pay a down payment. Get started here

Tighten your belt and save. Scrutinize your budget to discover ways you can cut expenses to save for your down payment. You might also decide to enroll in an automatic savings plan at your bank to automatically have a specific amount from your take-home pay moved into your savings account. You could look into some big expenses in your budget that you can give up, or reduce, at least temporarily. For example, you may move into less expensive housing, or stay local for your annual vacation.

Sell items you don't need and find a part-time job. Look for an additional job. This can be rough, but the temporary difficulty can provide your down payment money. In addition, you can put together an exhaustive list of items you can sell. Unused gold jewelry can be sold at local jewelers. A closet full of small things could add up to a nice sum at a garage or tag sale. You might also look into what your investments may bring if sold.

Tap into your retirement funds. Explore the details for your particular plan. Some homebuyers get down payment money by withdrawing funds from their IRAs or borrowing from 401(k) plans. Be sure to ask your plan representative about the tax consequences, repayment terms, and possible early withdrawal penalties.

Ask for help from generous family members. First-time homebuyers are sometimes lucky enough to get help with their down payment assistance from giving parents and other family members who are willing to help them get into their first home. Your family members may be pleased at the chance to help you reach the milestone of buying your first home.

Learn about housing finance agencies. These types of agencies provide special loan programs to low and moderate-income homebuyers, buyers with an interest in rehabilitating a house in a targeted area, and additional specific kinds of buyers as specified by the agency. Financing with this kind of agency, you may be given a below market interest rate, down payment help and other advantages. These kinds of agencies may assist you with a lower interest rate, get you your down payment, and offer other assistance. The main goal of not-for-profit housing finance agencies is boosting residential ownership in particular parts of the city.

The satisfaction will be the same, no matter which method you use to come up with the down payment. Your brand new home will be well worth it!

Want to discuss the best options for down payments? Call Joe Costa at Park Place Financial Group located in San Diego, California 646-245-7856.

Is Refinancing Worth The Cost?

Some have said that only when your new interest is at least two points lower, should you refinance your loan. That could have been accurate a while back, but with refinancing dropping in cost recently, it's a good time to think about a new loan! Refinancing has various advantages that will often make it worth the initial expenditure a few times over.

Advantages of Refinancing

You might be able to lower your interest rate (sometimes significantly) and reduce your mortgage payment amount with your refinanced mortgage loan. You also might be given the option of pulling out some of the equity in your property by "cashing out" a sum of money to renovate your home, consolidate debt, or take your family on a vacation. With lower rates, you might also be able to build up home equity faster by moving to a shorter-term mortgage loan.

The Cost

Of course, you will have some fees and expenses during your process of refinancing. When you refinance, you're paying for basically the same things you were charged for at the time you got your original mortgage loan. Included in the list will typically be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.

Do the Math

Paying discount points can get you a better interest rate. The money you'll save over the life of the mortgage loan might be significant if you have paid up front about 3% of the new loan total. We recommend that you talk to a tax professional before acting on hear-say that the paid points can be deducted on your federal income taxes.

Another thing about taxes is that if your interest rate is lowered, naturally you'll also be lowering the interest amount that you'll be able to deduct on your federal income taxes. This is another expense that some borrowers consider. We can help you do the math! Call Joe Costa at San Diego, California's Park Place Financial Group (646) 245-7856.

All things considered, for most the total of initial costs to refinance will be made up soon in monthly savings. We can help you find out your options, considering the effect a refinance may have on your taxes, if you are likely to sell your home in the near future, and your money on hand. Call us at (646) 245-7856 to get started.

Want to know more about refinancing? Call us at 646-245-7856.

Determine How Much You Can Borrow

A couple of factors determine the amount of money you can borrow.  What kind of monthly payment are you looking for? And given your unique credit and employment history, income and debt, and goals, how much will a lender loan you? Use the calculators on our website www.parkplacefg.com to determine your monthly payment amount. San Diego, California's Park Place Financial Group will also help you through different scenarios by asking a few simple questions. Because lender guidelines are fairly standard, we can give you a good idea of how much you can borrow after a short conversation. Call Joe Costa today at (646)245-7856.

Make Private Mortgage Insurance A Thing Of The Past

Beginning in 1999, lending institutions have been required to cancel a borrower's Private Mortgage Insurance (PMI) when his/her loan balance (for loans closed after July of that year) reaches less than seventy-eight percent of the price of purchase, but not at the time the borrower's equity gets to more than twenty-two percent. (There are some loans that are not covered by this law -like some loans considered 'high risk'.) But you have the right to cancel PMI yourself (for mortgages made past July 1999) when your equity gets to 20 percent, no matter the original purchase price.

Do your homework

Keep a running total of money going toward the principal. You'll want to stay aware of the the purchase prices of the houses that sell in your neighborhood. Unfortunately, if yours is a recent mortgage - five years or fewer, you probably haven't begun to pay very much of the principal: you are paying mostly interest.

Proof of Equity

You can begin the process of PMI cancellation as soon as you you think that your equity has reached 20%. First you will let your lending institution know that you are requesting to cancel your PMI. Next, you will be asked to submit documentation that you have at least 20 percent equity. Usually lenders ask for a state certified appraisal documented on the form: URAR-1004 (Uniform Residential Appraisal Report) to verify your home's equity and eligibility for PMI cancellation.

At  San Diego's Park Place Financial Group, we answer questions about PMI every day. Give Joe Costa a call: 646-245-7856.

Joe Costa's Weekly Mortgage Segment on 1170am

Tune in and get Radio Active with Joe Costa, the CEO of Park Place Financial Group.  Joe's informational weekly mortgage segment is on 1170am every Friday at 8pm.  He provides his San Diego, California listeners with real life loan scenarios and helps to educate buyers on the importance of choosing the right mortgage lender/broker who will find the best home loan product for that individual's life situation.  Go to www.joecosta.info

Park Place Financial Group Builds Value Based Relationships

Are looking to lower your current interest rate or obtain a loan for a home purchase? If you are,  Park Place Financial Group located in San Diego, California would like to help. At Park Place Financial Group, building a value based relationship is our number one priority and our passion is all about helping our customer find the best possible loan program based on their current and future needs. In doing so, we utilize our years of experience and expertise to help you succeed and build your real estate wealth. Give Joe Costa a mortgage professional with over 25 years of experience a call today at 646-245-7856. 

Park Place Financial Group Is Here To Help

Deciding to buy a house or refinance a mortgage is an important step.  Park Place Financial Group, located in San Diego, CA will help locate the loan program that's the right fit for you. We have a team of professionals to guide you through this major financial decision. For guidance in finding the best loan program for your unique situation, please contact Joe Costa at (646) 245-7856.

FICO vs Credit Score

Did you know that your FICO score, not your credit score, is extremely important when trying to obtain the best possible home loan interest rate?  90% of lenders use the FICO score stystem; however, borrowers are often confused between the difference in a credit score and a FICO score. Call mortgage professional Joe Costa from San Diego's Park Place Financial Group to help you understand the differences.

Joe Costa at Park Place Financial Group Can Help You Get A Loan This Summer

Before looking to purchase a home this summer, call Joe Costa at San Diego, California's Park Place Financial Group for a loan prequalification or preapproval letter.  This makes it easier when you find the perfect home to know that you already have a lender in place.  Joe Costa has been in the mortgage industry for over 25 years and can answer any questions you might have regarding interest rates and financing for a variety of purchase loan products that are available.