Interest rates are low right now, so now is the time to take advantage of that and look into refinancing your San Mateo home. If you have already been thinking about refinancing, there are a few factors you need to take into account before making the final decision.
Although rates are low right now, the current economic crisis has caused many lenders to reduce the amount of loans they approve. If you are ready to save on your mortgage payment each month and are ready to refinance, you must get your facts right so you are ready to go.
First you need to look at your loan-to-value ratio. In a no-cash refinancing, you may be able to borrow as much as 95% of your home’s value. However, if in these tough times, your San Mateo home’s value has fallen below the amount of your existing mortgage balance, you may not be able to refinance. Unfortunately this has been the case for too many San Mateo homeowners.
The main advantage to refinancing to a new lower interest rate is saving on your monthly mortgage payment. This is normally the reason most people choose to refinance their home mortgage in San Mateo. Do keep in mind that while it will save you monthly, there are still costs involved in refinancing such as closing costs, points and possible appraisal and attorney fees.
Shop around and do your research. You want to find the best financing interest rate possible in San Mateo. Typically San Mateo Community Banks and Credit Unions are more consumer-friendly and charge lower interest rates.
Make sure to also compare points versus no points before you refinance. Watch out for embedded points that could be included in the closing costs. Some lenders have been known to include the points in the closing costs without necessarily telling the buyer that these costs are points.
/kh