Refinancing 101
If you’re like most people, you’re a little confused when it comes to refinancing. You need to know more so you’ll know if you should refinance your property anywhere in California for that matter.
To put it simply, refinancing is the process of taking out a new mortgage loan and using it to pay off your existing loan. Your new loan comes with new terms. You can change the duration of the loan and the interest rate.
For instance, you might currently have a 30-year loan and decide to refinance to a 15-year mortgage to get a lower rate. Once you do that, you will benefit from the lower interest payments and you will be able to pay the loan off much faster.
That sounds like a great deal, doesn’t it?
That is just one example. You can refinance to another 30-year loan to get a better interest rate, or you can refinance your ARM.
With so many options, people all around California are turning to POP Mortgage to refinance their loans.
Why Refinance?
If you’re on the fence about refinancing, you want to make sure you’re doing it for the right reasons. It turns out there are many great reasons to refinance.
Want Better Interest Rates? Refinance!
Better interest rates are the most popular reason to refinance. People often find that refinance rates are lower than their current mortgage rates, and that shouldn’t come as a big surprise.
Mortgage rates have been on a steady decline for years. You might be locked into a 4.5 percent interest rate, and if you refinance, you could end up with a 3.5 percent interest rate. A percentage might not seem like much, but think of all of the money you could save by paying 1 percent less for the next 15 years.
Check out our mortgage calculator to find out what you would save with a lower interest rate.