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.

Park Place Financial Group Pays It Forward

Park Place Financial Group has recently established it's own charitable foundation known as The Park Place Foundation Group.  Joe Costa, CEO of Park Place Financial Group, wants to pay it forward to his community in San Diego, California.  Park Place will donate $100 for every purchase loan or refinance that the company closes. Our first charitable event will be serving meals at Father Joe's Village.  We are also establishing an ongoing virtual food drive for Feeding America.  You can donate to the food drive by either accessing our webiste at www.parkplacefg.com or on our Facebook page The Park Place Foundation Group.

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.

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.