Mortgage Refinancing Aliso Viejo
​
Deciding to refinance your mortgage isn't something you should take lightly. It involves using a new mortgage loan to replace an existing one. So, you could end up making your financial situation more complicated if you're not careful. Before going through the process, there are a few things you need to know about mortgage refinancing. Here is our guide to mortgage refinancing.
​
Is Refinancing Appropriate For Me?
​
You have to figure out why you want to refinance your home before deciding if mortgage refinancing makes sense for you.
-
Do you want to speed up your mortgage repayment or take advantage of low-interest rates?
-
Are you looking to free up cash by using the equity you've built in the house?
-
Do you want to get rid of credit card debt by rolling it into a newly refinanced mortgage?
-
Do you want to take advantage of high home equity?
-
Are you looking for a shorter term, such as replacing a 30-year mortgage with a 15-year mortgage so that you can pay less interest rate and off faster?
-
Do you want to change from an adjustable-rate loan to a fixed-rate mortgage?
-
Do you want to move from two to three mortgages to one?
​
Understanding your vision will help you select the right mortgage. However, we urge you to be upfront so that you can make the right decision when refinancing your mortgage.
​
What Are My Options When Refinancing?
​
There are different types of mortgage refinancing options homeowners can choose from depending on their financial situation. Here are some of the common mortgage options:
​
Cash-out refinance
​
A cash-out may make sense to improve your general financial situation if your home's appreciation and you've built significant equity through your monthly payments.
​
No cash-out refinance
​
You are refinancing the unpaid balance on your loan with a no cash-out refinance.
​
Enhanced relief refinance
​
An Enhanced Relief Refinance might make be the perfect choice for you if you want to refinance your mortgage, but the ratio of your loan-to-value exceeds the maximum permitted for a standard no cash-out mortgage refinance program.
​
What Are The Costs Of Mortgage Refinancing?
​
The cost of refinancing your mortgage varies based on your banker and lender, and they can quickly add up. Here are some examples of refinancing expenses:
​
-
Application fee: Most lenders or banks charge an application fee to cover the cost of checking a borrower's credit report and your loan processing.
-
Loan origination fee: Lenders or banks charge this fee to prepare and evaluate a mortgage loan.
-
Appraisal fee: Appraisal Management Company charges an appraisal fee. An appraisal service calculates the total worth of your home.
-
Title and insurance search: This charge covers the cost of reviewing the public record of your home, making sure that no one has a claim on the property.
​
Is Mortgage Refinancing Right for You?
​
Don't handle it yourself if you're still on the fence if the time is right to refinance your mortgage. Contact McLellan Team at 949-669-1100 for help Mortgage Refinancing Aliso Viejo.
​
​